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.
Novelty Product Manufacturer
Client: Massachusetts-based Novelty Product Manufacturer.
Situation: 11-year-old company was being liquidated by its existing lender.
Need: One of the company’s existing owners was seeking to acquire and re-start a profitable division of the company.
Solution: Prestige provided financing to fund the acquisition of certain property of the liquidating estate from the lender and support future growth.
Client: Ontario, Canada-based call center with $50 million in annual sales.
Situation: Ten-year-old call center was being acquired by a U.S. investor group.
Need: The investors were seeking to leverage the receivables of the call center to complete the acquisition and provide ongoing working capital.
Solution: In less than two weeks from the initial inquiry, Prestige provided a $5 million factoring line, allowing the buyers to complete the cross-border acquisition with a nominal equity investment.