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The Secured Lender

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June 17, 2024

Source: King Trade Capital

King Trade Capital (“KTC”) is pleased to announce the completion of a $1.5M purchase order-based production finance facility for a dry baked goods manufacturer in the western US.

KTC was referred to the client by an asset-based lender that couldn’t help with the company's seasonal production finance needs, but was familiar with King Trade’s finance capabilities.

Due to the seasonality of their business, the Client did not have sufficient availability under their existing asset-based lending facility to allow them to scale production ahead of the holiday deliveries.

The Client needed a finance solution to provide liquidity to allow them to pay various vendors for raw materials and packaging. They also needed help with production costs to produce the private label products to fulfill their large fall and holiday programs from a nationwide grocer.

KTC moved quickly to underwrite the Client’s capabilities and provide capital to the Client for purchase of the ingredients and materials necessary to produce the items needed to fulfill the seasonal program with the grocer. 

KTC worked closely with the current asset- based lender, an old friend in the finance business, to put in place an intercreditor agreement that provides the Client with the liquidity needed to manufacture and deliver their purchase orders while utilizing the current asset-based facility as their balance sheet grows. With a complete manufacturing finance solution, the Client can seek out larger sales programs and new customers.

About King Trade Capital

For almost 30 years, King Trade Capital has helped good companies grow their sales and profits by providing PO and supply chain finance solutions. KTC is operated by its founder and its entrepreneurial team that understand the financial needs of operating and growing a business. As pioneers in purchase-order financing and non-bank trade finance, King Trade Capital has developed the expertise and unrivaled financial capacity to help companies become more prosperous by providing stable and unique PO and supply chain finance solutions. Please contact 214-368-5100 or visit www.kingtradecapital.com