FACTORS ASSURANCE PROGRAM
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.
Client: An 11 year old artisanal pickle company.
Situation: The client was seeking additional capital when its bank could not increase its credit facility.
Need: The bank contacted Prestige to work together to increase the line by providing a carve out of receivables so that Prestige could provide additional cash to the company during their growth period.
Solution: Within 10 days Prestige and the bank signed an intercreditor agreement, allowing the client to utilize Prestige's financing in addition to the bank's facility and keep the orders flowing. Additionally, Prestige provided a factor's assurance letter to their co-packer so that they would get paid directly by Prestige in order to continue to increase their available credit line with their co-packer as their orders continued to grow.