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.
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.
Media and Branding Company
Client: New York based media and branding company.
Situation: The company bills their clients in installments under a contract. They had been financed by a factoring company who could not finance milestone billed receivables. Therefore, most of their invoices were deemed ineligible for funding.
Need: They needed an experienced factoring firm who understood their industry, the nature of their billing. One who could provide the financing that they needed in order to keep their cash flow steady.
Solution: Their banker was able to make an introduction to Prestige. Prestige was able to replace their current factor, giving them access to greater liquidity by financing all of their receivables, including those that were billed in milestones.
Online Publisher and Experiential Brand
Client: NY based online publisher and experiential brand.
Situation: Their bank was no longer able to provide financing as their financials no longer supported the loan amount that they had.
Need: Cash flow to support their growth.
Solution: Prestige was able to finance their receivables and pay off their bank so that they could focus on their growth.