RefinancingWhen a company enters or exits a growth stage, is experiencing financial or operational challenges, or has outgrown its current bank, it is likely time to secure replacement financing. Factoring is a very powerful financing tool and should be considered by business owners when going through periodic refinancing exercises.
Minnesota Recycling Company
Client: Minnesota Recycling Company
Situation: Client’s lender was looking to exit their financing relationship as their loan became too small.
Need: A lender to replace their bank who would provide working capital, flexibility and sufficient funds to pay off existing lender.
Solution: Prestige Capital provided the pay off to their lender and funded their ongoing operations seamlessly.
Massachusetts Toy Company
Client: Massachusetts Toy Company
Situation: This company had been purchased in bankruptcy by an investor and required cash flow for operations.
Need: Client needed immediate cash flow for operations and for payment licensing fees.
Solution: Within one week Prestige Capital financed the client’s receivables enabling client to pay licensing fees in a timely manner, as well as, provide ongoing cash flow to pay suppliers.
Consumer ProductsNew York
Client: Lifestyle Magazine
Situation: This lifestyle magazine had gone through financial difficulties as the magazine industry has taken a downturn in recent years. Their bank no longer supported them and asked them to find a new lender. The lender that they had been negotiating with for the previous 45 days suddenly declined the financing.
Need: A financial partner who would look beyond their financial statements and fund them based on their receivables which were strong and performing.
Solution: After being introduced by an investment banker, Prestige Capital was able to relieve them of the stress caused by the other finance company and close the deal in a matter of days satisfying their bank’s payoff deadline.
Appliance Recycling Center
Client: Appliance Recycling Center
Situation: Company works with energy utilities to replace inefficient household appliances. In selling their most profitable division, they reduced their existing bank loan to a level that was below the bank’s desired minimum.
Need: A facility to assist with working capital needs as they refocused their efforts on the utility side of their business.
Solution: Prestige closed on financing the US Corporation additionally setting up an agreement to finance their Canadian subsidiary.
Truck Repair and Restoration
FactoringUpstate New York
Client: Upstate New York truck repair and restoration company
Situation: Company was expanding rapidly but their bank would not expand their existing credit line
Need: A finance company to give them greater liquidity.
Solution: Prestige tripled their credit line so that they had the ability to pay off their existing bank and immediately facilitate growth.