Baked Goods Manufacturer
Deal Size: $3,200,000
Funding Requested: Letter of Credit/Cash Funding
A publicly traded company in the business of manufacturing baked goods approached KTC with $3.2 million worth of seasonal orders to major retail chains throughout the country. The company had experienced several years of continued sales downturns, however the company had recently developed a new decorative packaging for its product that was responsible for boosting sales.
The company had many years of manufacturing experience, plenty of capacity to handle the production of these orders, and a regional factor in place to accelerate cash flow once invoices were generated. The company, however, was on a C.O.D. basis with all suppliers which made cash flow extremely tight. The company needed to secure payment to the overseas supplier responsible for the packaging, and needed to stay current with its domestic vendors of raw materials.
KTC had the answer. KTC secured payment to the overseas supplier by making direct payments within agreed terms. Additionally, KTC reimbursed the company for the cost of the raw materials once the goods were completed and shipped to a third party fulfillment center. All goods were staged, packaged and shipped from the fulfillment center to the end customers’ distribution centers. With KTC’s help, the company was able to get the product out to market and fulfill extremely profitable business.