Early Stage Financing

Entrepreneurs often lack the operating history necessary to raise capital to finance a business. Factoring is often used by startups to provide the capital necessary to get a business off the ground.


  • Digital Media Company

    $ 750,000

    Factoring

    New York
    • Client: Upstate New York digital media company

    • Situation: The client developed digital technology that was being sold to big box retailers. The orders from the retailers were coming in fast and the client couldn’t keep up fulfilling the orders.

    • Need: The client needed working capital to be able to fulfill the orders from the retailers in a timely manner.

    • Solution: In less than one week from the initial call with the client, Prestige provided a $750,000 factoring line of credit which improved their cash flow and enabled the client to fulfill the back log of orders and ongoing working capital.

  • Manufacturer

    $ 500,000

    Factoring

    Florida
    • Client: Florida-based manufacturer of sports nutrition products.

    • Situation: After two years of research and development, the early stage company started generating revenue and needed to turn their invoices into immediate cash.

    • Need: The client needed cash to pay their suppliers up-front and to fund other working capital needs.

    • Solution: In six business days, Prestige provided a $500,000 factoring line of credit to the client which provided working capital and supported the company’s growth plan.

  • Technology Staffing Company

    $ 500,000

    Factoring

    New Jersey
    • Client: New Jersey-based technology staffing company.

    • Situation: The three-month old company was experiencing working capital constraints due to customers stretching their payments to more than 45 days.

    • Need: The client needed working capital to meet payroll and related tax expense and had a payroll that was quickly coming due.

    • Solution: Within three business days, Prestige provided a $500,000 factoring line of credit which enabled the client to meet their payroll expense and provided ongoing working capital.

  • Steel Company

    $ 2,000,000

    Factoring

    New Jersey
    • Client: New Jersey-based steel company with projected sales of $10 million.

    • Situation: Client historically sold on COD terms to customers but suddenly was forced to offer Net 60 day terms to retain key customer accounts. This resulted in a cash flow crunch for the business. In addition, the client had significant sales concentrations which made them unbankable.

    • Need: Client needed cash flow to support daily operating expenses and to take advantage of growth opportunities.

    • Solution: In less than two weeks, Prestige provided a $2 million factoring facility giving the client the necessary cash flow to operate their business while waiting 60 or more days for payment from customers. In addition, Prestige looked to the credit quality of the receivables and not the sales concentrations, in structuring a financing solution for the client that helped accelerate their growth.

  • Creative Services Firm

    $ 500,000

    Factoring

    New York
    • Client: New York-based creative services firm with $2.5 million in annual sales.

    • Situation: The one-year-old company creates advertising jingles for airlines and other clients. It takes the firm 45 to 60 days to generate billable work and then an additional 45 days before payments are received. This lengthy cycle resulted in cash flow constraints for the firm.

    • Need: The client required working capital financing to support this growing business.

    • Solution: Prestige provide a $500,000 line which bridges the gap between invoicing and payment and supports daily working capital needs.