With factoring, acquiring companies can turn the accounts receivable of a target company into immediate cash flow to acquire the company and provide for its ongoing capital needs.
Client: Staffing Company
Situation: After failing to complete the leverage buy out with an asset based lender client was at risk of losing the opportunity.
Need: Client needed a funding partner who could close very quickly.
Solution: Within 7 business days, Prestige provided the capital to close the transaction.
Client: Durable Computer Equipment
Situation: Fortune 500 company selling a small division of their company who had a major concentration in one customer.
Need: Buyer was looking for financing to supplement their limited equity contribution in purchasing the West Coast business.
Solution: With the assistance of their investment banker Prestige was willing and able to provide the needed leverage to finalize the sale.
Client: Staffing Company
Situation: An investment banker who had worked with Prestige in the past approached us after two lenders working on the transaction for over 45 days couldn’t close the deal in a timely manner, the seller got impatient and gave the buyer a deadline.
Need: Immediate financing to close the deal before the seller walked away from the transaction.
Solution: In a week, Prestige did a field exam and closed the deal, saving the deal and enabling the client to save face with his buyer.
Digital Media Products and Services
Client: New Jersey Digital media products and services
Situation: Recently spun off from a much larger corporation this employee owned company was paying off a large note to the parent company and was in a cash-crunch.
Need: Cash flow to pay off debt and support growth
Solution: Prestige was able to provide the much-needed cash flow by financing their accounts receivables which enabled them to service their customers and pay off their note to the parent company.
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.