This type of financing is a short-term loan that is used until a company secures permanent financing or removes an existing obligation. It allows a business to meet current obligations by providing immediate cash flow from factoring its accounts receivable.
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 financing 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
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.
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.
Consumer Electronics Company
Client: Midwest-based consumer electronics company with $75 million in annual sales.
Situation: The bank for this eight-year-old seasonal business failed to close a new line of credit in a timely manner.
Need: The client needed bridge financing to fill the gap until permanent financing could be obtained.
Solution: Within five business days, Prestige provided a $5 million bridge facility to alleviate the timing pressure until the company’s bank could close the facility.