Material Handling Company
Client: Midwest bulk material handling company with $10 million in annual sales.
Situation: 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.
Solution: Prestige provided a $2 million factoring facility to pay off the former factor within six days, and together with the equipment lender, worked out a collateral sharing agreement which gave the client greater borrowing power.
Client: East Coast technology company with $10 million in annual sales.
Situation: Client sought cash flow to grow their business without diluting equity.
Need: Client pre-bills its customers one year in advance, however there can be a delay before the client receives payments from its customers. In the interim between invoicing customers and collecting cash receipts, the Company needed capital to fund daily operating expenses.
Solution: Prestige provided a $750,000 factoring facility within seven days and developed a confirmation letter for the client to provide to his customers which guaranteed payment of the invoices, thereby providing a workable solution for both Prestige and client.
Television Production Company
Client: New York-based television production company.
Situation: Client needed immediate working capital to support the production of a Super Bowl television ad.
Need: Client needed to borrow on progress-billed invoices which historically are difficult to finance.
Solution: Prestige provided a $3 million factoring facility within 10 days and helped the client obtain appropriate verifications and fund without an estoppel letter, in which a customer, or account debtor, promises that they will not offset future payments based on past client performance. Estoppel letters are required by most lenders and are sometimes difficult to obtain.
Client: 21 year old window company located in New York
Situation: The company needed additional capital beyond their bank facility.
Need: The bank contacted Prestige to assist their client who had been with them for many years.
Solution: Within 5 business days, Prestige provided a $5 million dollar line to enable them to fill a backlog of orders and continue to operate their business. Additionally, Prestige provided a Factor’s Assurance letter to their supplier in order to enhance their timely payments to their suppliers and run their operation smoothly.
Client: A five year old electronics importer.
Situation: The client had insufficient cash flow to fill their orders.
Need: As a new entity of a larger conglomerate, this division did not have sufficient length of time in business to obtain a traditional bank facility.
Solution: Within 7 business days, Prestige provided a $500,000 line of credit to fill their backlog of orders. In addition, they added two other related companies that also did not qualify for traditional bank financing. Prestige also secured a Factor’s Assurance letter to their supplier which guarantees payment to the supplier once an invoice is sold to Prestige.