Region: National and Canada
– Increased Liquidity
– Provided Extended Terms to Customers
– Pursue New Clients
Invoice Factoring Supports Manufacturers Growth & Increases Cash Flow
The client a family-owned manufacturer has been providing businesses with PVC flexible hose and tubing throughout North America and Canada for 15 years. The Company’s products support construction, electrical, irrigation, landscape, marine, spa manufacturing and medical industries. In addition, to their standard inventory the Company can fulfill custom design orders. The Company operates from three distribution locations.
Over the last several years the Company has struggled with cash flow constraints. The management team approached the Company’s previous lender to extend additional cash to relieve those constraints; and provide additional capital to support their growth strategy. The previous lender was unable to increase the line. As a result the owner infused a significant amount of personal funds into the business to maintain operations.
Aware of the liquidity challenges facing the Company, their Seacoast commercial banker referred them to the Seacoast Business Funding division, confident that the team could deliver a solution. After reviewing the Company structure, financials, and growth strategy, Seacoast moved forward and provided them with a $1,200,000 revolving factoring facility.
With the new factoring facility in place the Company will bring Accounts Payable current and alleviate the strain of the existing payment plan structure in place with its vendors. Additionally, having the working capital in place the Company is now able to extend terms for credit-worthy customers. Having the invoice factoring facility in place provides the Company with the liquidity to focus on growing the business over the next several years.