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: 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.