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.
Architectural Metal and Glass Company
Client: NY based architectural metal and glass company.
Situation: The client’s orders were growing quickly and they were having difficulty with cash flow with their current bank line.
Need: A larger line to support their growth. Their banker recognized that by replacing their bank credit line with cash flow on their invoices, the client would be able to accept much larger contracts whose invoices would be financed by Prestige.
Solution: The client is now able to take on much larger orders. They are grateful that their banker recognized that Prestige’s program was a better fit for their rapid growth than traditional bank financing.
Client: NY based Perfume Distributor
Situation: The client had large invoices from Overstock.com
Need: Client needed to finance their invoices in order to pay suppliers so that they could continue to get product and grow their business. Their banker recognized that with invoice financing there is no cap on the volume that Prestige will finance therefore would be a perfect fit for their client who was getting inundated with large holiday orders.
Solution: The client’s business has grown quite rapidly as they were only limited by cash flow, not their ability to obtain large orders. This holiday season was their best yet!
Construction Clean Up Company
Client: NY based construction clean up company.
Situation: The client was experiencing cash flow issues because of slow paying customers. Their banker could no longer continue covering their overdrafts therefore they referred the client to Prestige.
Need: Steady cash flow to make their payroll without interruption.
Solution: Prestige was able to provide immediate financing on their invoices to smooth out their cash flow which allowed them to take on additional clients and grow their business rapidly.
Client: East Coast electronics distributor with $3 million in annual sales.
Situation: The distributor was an existing client of Prestige Capital and its management team was well known to Prestige. The Client’s owners made the strategic decision to focus their attention on other core businesses and wanted to divest the electronics distributor.
Need: Client’s senior management team approached Prestige to fund a management buyout.
Solution: Within three business days, Prestige refinanced the existing facility for the newly acquired company with the new ownership group.
Material Handling Company
Client: Midwest bulk material handling company with $10 million in annual sales.
Situation: Client was unhappy with their former factor who was not timely in funding assignments of invoices. The client asked his equipment lender for a referral to a new working capital provider.
Solution: Prestige provided a $2 million factoring facility to pay off the former factor within six days, and together with the equipment lender, worked out a collateral sharing agreement which gave the client greater borrowing power.