Women’s Apparel Company
NEW YORK, U.S.
Deal Size: $22,000,000
Funding Requested: Cash Funding
A broker introduced King Trade Capital to a woman’s apparel distributor located in New York City. The company was growing quickly and had exhausted its credit terms with its suppliers as well as free cash flow to finance the growth. The company needed a flexible form of financing that could accommodate its large growth and move quickly.
The client came to KTC with the opportunity to purchase product from their factories in China to be brought into the US for sale to major chain retailers. Orders were increasing significantly, and the client’s factory needed funding once goods were produced and put on a boat in order to keep ongoing production on schedule.
The client, having been in the apparel business since the 1970s, had an excellent track record with a wide customer base. Our client also had a good track record of performance with its third party factories. KTC was able to quantify our client’s ability to perform and structure a secured repayment mechanism to the overseas factories via payment against shipping documents. KTC was able to partner with the client’s existing accounts receivable factoring company to provide a direct form of repayment to KTC once goods were shipped and invoiced to the client’s end customers.
By providing funding at the time product was shipped from China, KTC’s funding had the effect of accelerating payments to the client’s factories 30 to 60 days before KTC’s client was able to invoice their customer. More importantly, it allowed the client’s factory to run at full capacity and allow our client to go into the marketplace and garner more business. KTC’s funding provided the springboard to allow our client to have their best revenue year ever.