Typically, as a company grows so does its need for financing. Companies need to have ready capital to take advantage of opportunities, whether organic growth or by acquisition. Factoring provides that peace of mind and reliable financing.
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.
Client: East Coast high-end branded liquor manufacturer.
Situation: The start-up company, which was originally seeking equity financing, was introduced to Prestige by a bank seeking their non-lending business. The client had a 100% sales concentration account which made it very difficult to raise equity or obtain traditional bank financing. In addition, the client’s contract manufacturer was unable to provide terms due to a lack of payment history.
Need: Based on forecasted sales to the customer, the client needed a $3 million line for working capital needs.
Solution: After performing due diligence on the client’s customer, Prestige provided a $3 million factoring line, without diluting equity. Additionally, the referring bank obtained the banking relationship for the client. One and a half years later, the owner sold to a conglomerate for $30 million.
Automotive Parts Manufacturer
Client: Midwest automotive parts manufacturer.
Situation: 22-year-old manufacturer was in aggressive acquisition mode during the downturn in the automotive industry.
Need: The client wanted to partner with a commercial finance source that could close complex leveraged buyouts in two weeks or less.
Solution: Prestige was able to close and fund seven separate transactions totaling $40 million in combined facilities. Within nine months, the client graduated to an $80 million asset based lending facility.
Manufacturer of Specialty Vehicles
Client: New Jersey-based manufacturer of specialty vehicles.
Situation: The client was purchasing a fabricator of specialty vehicles from an Assignee for the Benefit of Creditors.
Need: The acquisition process in an ABC matter can be complex due to the divergent interests of different stakeholder groups and the legal processes required to implement a transaction. The client needed a lender who had extensive situational experience and a track record of providing financing to companies in similar positions.
Solution: Prestige provided a $500,000 factoring line of credit to support the acquisition. Prestige has long history of success in providing financing to companies in financial distress and helping clients navigate through the process quickly and efficiently.
Novelty Product Manufacturer
Snow Removal Company
Client: New Jersey-based snow removal company with $3 million in annual sales.
Situation: Six-year-old business had outgrown its line of credit with a local bank.
Need: The client needed a larger financing facility to support seasonal demands and accelerate cash flow.
Solution: Prestige provided a $750,000 factoring line to solve the immediate cash flow crunch and provide for seasonal sales fluctuations.