Electronic Parts Distributor

Type of Deal: Domestic
Deal Size: $3,200,000
Funding Requested: Cash Funding

KTC was approached by a small start up company selling electronic parts to a large manufacturer. The parts were in high demand and difficult to find. The company had a unique relationship with its supplier which allowed it to obtain the parts, however the company had to react fast.

The company had been in business less then four months with little sales history. However, the principals had significant experience in the industry, had a $3.2 million order in hand from a credit worthy customer, and had sourced the parts from a large supplier.

KTC overcame the start up nature of the company and focused on the underlying transaction at hand. In less than one week, KTC was able to underwrite a $1.95 million financing package that secured payment directly to the supplier, as well as put a factor in place to purchase the resulting invoice once goods were shipped. KTC’s financing allowed the company to realize the sort of profits experienced companies dream of.