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Bridge Financing

Bridge Financing is a short-term financing solution usually taken over a three to six month period. This financing is used until a company secures permanent financing or removes an existing obligation. Bridge financing allows a business to meet current obligations by providing immediate cash flow from factoring its accounts receivable.



BRIDGE FUNDING CLIENTS


  • Washington Personnel Agency

    $ 2,000,000

    Service Providers

    Washington
    • Client: Washington Personnel Agency

    • Situation: Company was young and did not have an extensive credit history. Customer had a line of credit with their bank, but the bank was unable to increase their current credit line to finance their growth.

    • Need: Company was not able to raise enough capital to fund their payroll. They needed a fast solution to a significant amount of funds to finance their rapid growth.

    • Solution: Prestige Capital was able to step in and provide a credit line, which was significantly larger than their bank was willing to provide.

  • Staffing Industry

    $ 10,000,000

    Factoring

    Northeast
    • Client: Northeast Staffing Agency acquiring another entity in the same industry.

    • Situation: Client was seeking acquisition financing and had been working with an asset based lender to finance the acquisition. The asset based lender was taking too long to close and the client was at risk of losing the opportunity to acquire the target company.

    • Need: Client needed financing in less than two weeks in order to keep the deal alive until they could close an asset based loan.

    • Solution: Within two weeks, Prestige was able to provide the financing needed to acquire the company and structured a bridge facility allowing client to graduate to ABL in 3 months.

  • Vitamin Manufacturer

    $ 2,500,000

    Factoring

    West Coast
    • Client: West Coast-based vitamin manufacturer with $15 million in annual sales.

    • Situation: The company was in the process of being sold to a new ownership group.

    • Need: The seller needed bridge funding until the sale was finalized. During the interim period, Prestige management worked with both the seller and buyer to support their efforts to bring the sale to a successful conclusion.

    • Solution: The buyer was so pleased with Prestige’s way of doing business that they signed up for an extension of Prestige’s contract and immediately filled $500,000 in back orders.

  • Importer of Household Goods

    $ 600,000

    Factoring

    New Jersey
    • 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 funding to fill the gap until the SBA loan was approved.

    • Solution: Prestige provided bridge funding 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.

  • 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.

Bridge financing FAQ

Similar Pages: Dip Financing | Invoice Factoring