CREDIT PROTECTION SERVICES
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 global banking environment, the parent company made an abrupt decision to stop supporting the U.S. subsidiary. 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 would have closed.
Importer of Household Goods
Client: New Jersey-based importer of household goods with $4 million in annual sales.
Situation: The three-year-old company had a strong backlog of orders but did not have adequate cash flow to purchase inventory to fulfill them. The importer applied for an SBA loan but was told it would take a while to get approved.
Need: The client needed bridge financing to fill the gap until the SBA loan was approved.
Solution: Prestige provided bridge financing while client arranged for additional working capital with an SBA lender. The SBA loan funded additional assets, while Prestige continued to fund receivables to support daily working capital needs.
Client: East Coast high-end branded liquor manufacturer.
Situation: The start-up company, which was originally seeking equity financing, was introduced to Prestige by a bank seeking their non-lending business. The client had a 100% sales concentration account which made it very difficult to raise equity or obtain traditional bank financing. In addition, the client’s contract manufacturer was unable to provide terms due to a lack of payment history.
Need: Based on forecasted sales to the customer, the client needed a $3 million line for working capital needs.
Solution: After performing due diligence on the client’s customer, Prestige provided a $3 million factoring line, without diluting equity. Additionally, the referring bank obtained the banking relationship for the client. One and a half years later, the owner sold to a conglomerate for $30 million.
Consumer Products Company
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.
Automotive Parts Manufacturer
Client: Midwest automotive parts manufacturer.
Situation: 22-year-old manufacturer was in aggressive acquisition mode during the downturn in the automotive industry.
Need: The client wanted to partner with a commercial finance source that could close complex leveraged buyouts in two weeks or less.
Solution: Prestige was able to close and fund seven separate transactions totaling $40 million in combined facilities. Within nine months, the client graduated to an $80 million asset based lending facility.