Client historically sold on COD terms to customers but suddenly was forced to offer Net 60 day terms to retain key customer accounts. This resulted in a cash flow crunch for the business. In addition, the client had significant sales concentrations which made them unbankable.
Material Handling Company
Client was unhappy with their former factor who was not timely in funding assignments of invoices. The client asked his equipment lender for a referral to a new working capital provider.
The company needed additional capital beyond their bank facility.
Marble and Tile Importer
The twenty-year-old company had historically been self-funded. The importer experienced a cash flow crunch when its receivable turnover slowed to an unprecedented 60 days and its vendors required payment within 30 days.
The company’s bank was taken over by the FDIC which resulted in their loss of an ongoing funding source. Without a line, the 11-year-old company was unable to pay its vendors and had to scale back operations.