Financing US Subsidiaries2023-01-05T19:12:26+00:00

Financing U.S. Subsidiaries

Foreign business, entities looking to enter the U.S. market may create a U.S. subsidiary to manage operations and hold title to U.S. assets. Prestige provides creative global solutions to U.S. subsidiaries to grow their business and improve liquidity resulting from the sale of accounts receivables.

LIGHT MANUFACTURER

$ 1, 500,000| Factoring | U.S. Subsidiary

Client:

A light manufacturer, which was a domestic subsidiary of an insolvent foreign parent company.

Situation:

The foreign parent company defaulted on its loan obligation, and even though the subsidiaries were not parties to the loan agreement, they found themselves without a lender while the matter was being resolved.

Need:

The two U.S. subsidiaries needed stand-alone financing to fulfill a backlog of orders and provide ongoing working capital.

Solution:

Prestige worked diligently to provide a combined line of $1.5 million for the entities to meet payroll and operating expenses.

CARTON MANUFACTURER

$ 300,000| Factoring | New Jersey

Client:

U.S. Subsidiary of German carton manufacturer with $5 million in annual sales.

Situation:

The ten-year-old subsidiary was historically funded by its foreign parent company. Due to the global banking environment, the parent company made an abrupt decision to stop supporting the U.S. subsidiary. As a result, the subsidiary faced closure if it could not secure financing.

Need:

The subsidiary needed immediate stand-alone financing to provide for its ongoing capital needs.

Solution:

Within four days, Prestige purchased and funded $300,000 in receivables which prevented a disruption in operations and preserved jobs. Without this funding, the subsidiary probably would have closed.

HI-TECH ELECTRONIC MANUFACTURER

$ 1,500,000| Factoring | Midwest

Client:

Hi-Tech Electronic Manufacturer

Situation:

Foreign-owned company had US presence, but no operational or support staff in the US.

Need:

Client sought acquisition financing to assist in the purchase of this entity and incorporate in the US.

Solution:

The combination of factoring the target’s A/R and the unencumbered A/R of one of their other holdings provided the necessary funds to complete the acquisition within two weeks of being introduced to the deal.

WEST COAST CAMERA COMPANY

$ 5,000,000 | Factoring | West Coast

Client:

West Coast Camera Company

Situation:

US Subsidiary seeking financing as foreign parent was no longer willing nor able to support the subsidiary.

Need:

Working capital for growth.

Solution:

Prestige Capital was able to provide the capital and allow the subsidiary to finance their growth.

LIGHT MANUFACTURER

$ 1,500,000| Factoring | U.S. Subsidiary

Client:

A light manufacturer, which was a domestic subsidiary of an insolvent foreign parent company.

Situation:

The foreign parent company defaulted on its loan obligation, and even though the subsidiaries were not parties to the loan agreement, they found themselves without a lender while the matter was being resolved.

Need:

The two U.S. subsidiaries needed stand-alone financing to fulfill a backlog of orders and provide ongoing working capital.

Solution:

Prestige worked diligently to provide a combined line of $1.5 million for the entities to meet payroll and operating expenses.

NEW YORK WATCH COMPANY

$ 2,000,000 | Consumer Products | New York

Client:

New York Watch Company

Situation:

Company was seeking immediate cash flow during their busy fourth quarter.

Need:

Since their bank was unable to provide a loan, an introduction to Prestige was made to provide invoice financing.

Solution:

Within one week the client financed $1,000,000 of receivables enabling them to pay their suppliers in a timely manner.

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