Refinancing2023-01-05T17:51:42+00:00

Refinancing

When a company enters or exits a growth stage, is experiencing financial or operational challenges, or has outgrown its current bank, it is likely time to secure replacement financing. Factoring is a very powerful financing tool and should be considered by business owners when going through periodic refinancing exercises.

CONSUMER PRODUCTS COMPANY

$ 1,350,000| Factoring | Midwest

Client:

Midwest consumer products company with $20 million in annual sales.

Situation:

The fifteen-year-old company’s lender was unable to provide a scheduled seasonal over advance due to issues with its own bank. The client was at risk of losing $5 million in sales.

Need:

The client was seeking immediate funding to fulfill its orders.

Solution:

Within seven business days, Prestige was able to negotiate an intercreditor agreement (carve out) with the bank to provide the client with the liquidity needed to meet its seasonal demands.

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.

REFRIGERATION AND AIR CONDITIONING SERVICE

$ 550,000| Factoring| New England

Client:

New England-based refrigeration and air conditioning service specialist with $4 million annual sales.

Situation:

The fifteen-year-old seasonal business had fluctuations in sales and cash flow throughout the year. A request for a line increase to provide additional working capital during peak periods was declined by their bank.

Need:

The client needed flexible working capital financing to purchase inventory and hire seasonal personnel.

Solution:

Within ten days from application, Prestige provided the client with a factoring facility which provided steady and predictable cash flow and met seasonal demands.

SOFTWARE CONSULTANT

$ 750,000| Factoring| New York

Client:

New York-based Microsoft software consultant with $4 million annual sales.

Situation:

The six-year-old company was seeking to refinance its line when it became a victim of a bait and switch scenario by an unscrupulous lender. Shortly before loan closing the company learned that the lender’s actual terms varied drastically from the original proposal.

Need:

The client was in need of immediate financing and wanted a lender they could trust.

Solution:

Prestige provided a fast, simple and straightforward proposal and closed on a factoring facility within five business days.

CONSTRUCTION CLEAN UP COMPANY

$ 1,000,000| Factoring| New York

Client:

NY based construction clean up company.

Situation:

The client was experiencing cash flow issues because of slow paying customers. Their banker could no longer continue covering their overdrafts therefore they referred the client to Prestige.

Need:

Steady cash flow to make their payroll without interruption.

Solution:

Prestige was able to provide immediate financing on their invoices to smooth out their cash flow which allowed them to take on additional clients and grow their business rapidly.

ONLINE PUBLISHER AND EXPERIENTIAL BRAND

$ 500,000| Factoring| New York

Client:

NY based online publisher and experiential brand.

Situation:

Their bank was no longer able to provide financing as their financials no longer supported the loan amount that they had.

Need:

Cash flow to support their growth.

Solution:

Prestige was able to finance their receivables and pay off their bank so that they could focus on their growth.

MEDIA AND BRANDING COMPANY

$ 750,000| Factoring| New York

Client:

New York based media and branding company.

Situation:

The company bills their clients in installments under a contract. They had been financed by a factoring company who could not finance milestone billed receivables. Therefore, most of their invoices were deemed ineligible for funding.

Need:

They needed an experienced factoring firm who understood their industry, the nature of their billing. One who could provide the financing that they needed in order to keep their cash flow steady.

Solution:

Their banker was able to make an introduction to Prestige. Prestige was able to replace their current factor, giving them access to greater liquidity by financing all of their receivables, including those that were billed in milestones.

TRUCK REPAIR AND RESTORATION

$ 2,000,000| Factoring| Upstate New York

Client:

Upstate New York truck repair and restoration company

Situation:

Company was expanding rapidly but their bank would not expand their existing credit line

Need:

A finance company to give them greater liquidity.

Solution:

Prestige tripled their credit line so that they had the ability to pay off their existing bank and immediately facilitate growth.

ARCHITECTURAL METAL AND GLASS COMPANY

$ 1,000,000| Factoring | New York

Client:

NY based architectural metal and glass company.

Situation:

The client’s orders were growing quickly and they were having difficulty with cash flow with their current bank line.

Need:

A larger line to support their growth. Their banker recognized that by replacing their bank credit line with cash flow on their invoices, the client would be able to accept much larger contracts whose invoices would be financed by Prestige.

Solution:

The client is now able to take on much larger orders. They are grateful that their banker recognized that Prestige’s program was a better fit for their rapid growth than traditional bank financing.

APPLIANCE RECYCLING CENTER

$ 5,000,0000| Refinancing| Midwest

Client:

Appliance Recycling Center

Situation:

Company works with energy utilities to replace inefficient household appliances. In selling their most profitable division, they reduced their existing bank loan to a level that was below the bank’s desired minimum.

Need:

A facility to assist with working capital needs as they refocused their efforts on the utility side of their business.

Solution:

Prestige closed on financing the US Corporation additionally setting up an agreement to finance their Canadian subsidiary.

LIFESTYLE MAGAZINE

$ 1,500,000| Consumer Products| New York

Client:

Lifestyle Magazine

Situation:

This lifestyle magazine had gone through financial difficulties as the magazine industry has taken a downturn in recent years. Their bank no longer supported them and asked them to find a new lender. The lender that they had been negotiating with for the previous 45 days suddenly declined the financing.

Need:

A financial partner who would look beyond their financial statements and fund them based on their receivables which were strong and performing.

Solution:

After being introduced by an investment banker, Prestige Capital was able to relieve them of the stress caused by the other finance company and close the deal in a matter of days satisfying their bank’s payoff deadline.

MINNESOTA RECYCLING COMPANY

$ 7,000,000| Service Providers| Minnesota

Client:

Minnesota Recycling Company

Situation:

Client’s lender was looking to exit their financing relationship as their loan became too small.

Need:

A lender to replace their bank who would provide working capital, flexibility and sufficient funds to pay off existing lender.

Solution:

Prestige Capital provided the pay off to their lender and funded their ongoing operations seamlessly.

PENNSYLVANIA DATA ANALYTICS

$ Line Amount| Service Providers| Pennsylvania

Client:

Pennsylvania Data Analytics

Situation:

The company which had been funded by a bank was seeking to refinance their bank loan.

Need:

The bank that had funded them had exited this business sector and was seeking a finance firm to replace the bank’s current financing.

Solution:

Prestige quickly funded their receivables, paying off the bank in a timely manner.

PENNSYLVANIA SOFTWARE AND E-LEARNING COMPANY

$ Line Amount| Service Providers| Pennsylvania

Client:

Pennsylvania Software and E-Learning Company

Situation:

Company was introduced to Prestige after they had experienced losses and needed to exit their current financing with the bank.

Need:

The bank needed to be paid off quickly before quarter end.

Solution:

Prestige worked closely with the bank’s workout team to insure the payoff was made with the bank’s requirement.

CONSUMER PRODUCTS COMPANY

$ 1,350,000| Factoring | Midwest

Client:

Midwest consumer products company with $20 million in annual sales

Situation:

The fifteen-year-old company’s lender was unable to provide a scheduled seasonal over advance due to issues with its own bank. The client was at risk of losing $5 million in sales.

Need:

he client was seeking immediate funding to fulfill its orders.

Solution:

Within seven business days, Prestige was able to negotiate an intercreditor agreement (carve out) with the bank to provide the client with the liquidity needed to meet its seasonal demands.

ELECTRONICS DISTRIBUTOR

$ 500,000 | Factoring | East Coast

Client:

East Coast electronics distributor with $3 million in annual sales.

Situation:

The distributor was an existing client of Prestige Capital and its management team was well known to Prestige. The Client’s owners made the strategic decision to focus their attention on other core businesses and wanted to divest the electronics distributor.

Need:

Client’s senior management team approached Prestige to fund a management buyout.

Solution:

Within three business days, Prestige refinanced the existing facility for the newly acquired company with the new ownership group.

PERFUME DISTRIBUTOR

$ 1,000,000| Factoring | New York

Client:

NY based Perfume Distributor

Situation:

The client had large invoices from Overstock.com.

Need:

Client needed to finance their invoices in order to pay suppliers so that they could continue to get product and grow their business. Their banker recognized that with invoice financing there is no cap on the volume that Prestige will finance therefore would be a perfect fit for their client who was getting inundated with large holiday orders.

Solution:

The client’s business has grown quite rapidly as they were only limited by cash flow, not their ability to obtain large orders. This holiday season was their best yet!

APPLIANCE RECYCLING CENTER

$ 5,000,0000 | Refinancing | Midwest

Client:

Appliance Recycling Center

Situation:

Company works with energy utilities to replace inefficient household appliances. In selling their most profitable division, they reduced their existing bank loan to a level that was below the bank’s desired minimum.

Need:

A facility to assist with working capital needs as they refocused their efforts on the utility side of their business.

Solution:

Prestige closed on financing the US Corporation additionally setting up an agreement to finance their Canadian subsidiary.

LIFESTYLE MAGAZINE

$ 1,500,000 | Consumer Products | New York

Client:

Lifestyle Magazine

Situation:

This lifestyle magazine had gone through financial difficulties as the magazine industry has taken a downturn in recent years. Their bank no longer supported them and asked them to find a new lender. The lender that they had been negotiating with for the previous 45 days suddenly declined the financing.

Need:

A financial partner who would look beyond their financial statements and fund them based on their receivables which were strong and performing.

Solution:

After being introduced by an investment banker, Prestige Capital was able to relieve them of the stress caused by the other finance company and close the deal in a matter of days satisfying their bank’s payoff deadline.

MASSACHUSETTS TOY COMPANY

$ 2,000,000 | Consumer Products | Massachusetts

Client:

Massachusetts Toy Company

Situation:

This company had been purchased in bankruptcy by an investor and required cash flow for operations.

Need:

Client needed immediate cash flow for operations and for payment licensing fees.

Solution:

Within one week Prestige Capital financed the client’s receivables enabling client to pay licensing fees in a timely manner, as well as, provide ongoing cash flow to pay suppliers.

CONSUMER PRODUCT COMPANY

$ 12,000,000| Consumer Products| New York

Client:

Situation:

This 30 year old company needed to pay off their bank due to a breach of financial covenants.

Need:

Client needed to move quickly to pay off their bank line before year end. Their bank line included both accounts receivable and inventory.

Solution:

Prestige brought in an inventory lender to partner with, enabling a combined facility to have sufficient cash to pay off the bank. Within two weeks, the financing was provided to pay off the bank within their expected payoff date allowing the company to continue with their turnaround plan.

PERFUME DISTRIBUTOR

$ 1,000,000 | Income Financing | New York

Client:

NY based Perfume Distributor

Situation:

The client had large invoices from Overstock.com

Need:

Client needed to finance their invoices in order to pay suppliers so that they could continue to get product and grow their business. Their banker recognized that with invoice financing there is no cap on the volume that Prestige will finance therefore would be a perfect fit for their client who was getting inundated with large holiday orders.

Solution:

The client’s business has grown quite rapidly as they were only limited by cash flow, not their ability to obtain large orders. This holiday season was their best yet!

TRUCK REPAIR AND RESTORATION

$ 2,000,000|Income Financing |Upstate New York

  • Client: Upstate New York truck repair and restoration company
  • Situation: Company was expanding rapidly but their bank would not expand their existing credit line
  • Need: A finance company to give them greater liquidity.
  • Solution: Prestige tripled their credit line so that they had the ability to pay off their existing bank and immediately facilitate growth.

SOFTWARE CONSULTANT

$ 750,000|Income Financing |New York

  • Client: New York-based Microsoft software consultant with $4 million annual sales.
  • Situation: The six-year-old company was seeking to refinance its line when it became a victim of a bait and switch scenario by an unscrupulous lender. Shortly before loan closing the company learned that the lender’s actual terms varied drastically from the original proposal.
  • Need: The client was in need of immediate financing and wanted a lender they could trust.
  • Solution: Prestige provided a fast, simple and straightforward proposal and closed on a factoring facility within five business days.

CONCRETE COMPANY

$ 1,000,000| Income Financing | New Jersey

  • Client: New Jersey-based third generation ready-mix concrete company with $8 million in annual sales.
  • Situation: 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.
  • Need: In order to repay its debt to the bank/FDIC and secure financing to resume normal business operations, the company needed a finance company that was sophisticated enough to negotiate with both the bank and the FDIC attorneys to close the deal.
  • Solution: After several months of bureaucratic negotiations, Prestige factored approximately $1 million in receivables, repaying the client’s debt and cleaning up its payables so that the company could return to normal operations.

Income Financing |New Jersey

CONSTRUCTION CLEAN UP COMPANY

$ 1,000,000|Income Financing |New York

  • Client: NY based construction clean up company.
  • Situation: The client was experiencing cash flow issues because of slow paying customers. Their banker could no longer continue covering their overdrafts therefore they referred the client to Prestige.
  • Need: Steady cash flow to make their payroll without interruption.
  • Solution: Prestige was able to provide immediate financing on their invoices to smooth out their cash flow which allowed them to take on additional clients and grow their business rapidly.

ARCHITECTURAL METAL AND GLASS COMPANY

$ 1,000,000|Income Financing| New York

  • Client: NY based architectural metal and glass company.
  • Situation: The client’s orders were growing quickly and they were having difficulty with cash flow with their current bank line.
  • Need: A larger line to support their growth. Their banker recognized that by replacing their bank credit line with cash flow on their invoices, the client would be able to accept much larger contracts whose invoices would be financed by Prestige.
  • Solution: The client is now able to take on much larger orders. They are grateful that their banker recognized that Prestige’s program was a better fit for their rapid growth than traditional bank financing.
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