A measure of both a company’s efficiency and its short-term financial health, working capital is the cash a business requires to fund day-to-day operations. At times, working capital constraints occur due to rapid growth, seasonality, delayed customer payments and other unexpected events. Factoring provides immediate access to cash for business owners.
Automotive Parts Manufacturer
Client: Midwest automotive parts manufacturer.
Situation: 22-year-old manufacturer was in aggressive acquisition mode during the downturn in the automotive industry.
Need: The client wanted to partner with a commercial finance source that could close complex leveraged buyouts in two weeks or less.
Solution: Prestige was able to close and fund seven separate transactions totaling $40 million in combined facilities. Within nine months, the client graduated to an $80 million asset based lending facility.
Manufacturer of Specialty Vehicles
Client: New Jersey-based manufacturer of specialty vehicles.
Situation: The client was purchasing a fabricator of specialty vehicles from an Assignee for the Benefit of Creditors.
Need: The acquisition process in an ABC matter can be complex due to the divergent interests of different stakeholder groups and the legal processes required to implement a transaction. The client needed a lender who had extensive situational experience and a track record of providing financing to companies in similar positions.
Solution: Prestige provided a $500,000 factoring line of credit to support the acquisition. Prestige has long history of success in providing financing to companies in financial distress and helping clients navigate through the process quickly and efficiently.
Novelty Product Manufacturer
Client: U.S. subsidiary light manufacturer of an insolvent foreign parent company.
Situation: The foreign parent company defaulted on its loan obligation, and even though the subsidiaries were not parties to the loan agreement, they found themselves without a lender while the matter was being resolved.
Need: The two U.S. subsidiaries needed stand-alone financing to fulfill a backlog of orders and provide ongoing working capital.
Solution: Prestige worked diligently to provide a combined line of $1.5 million for the entities to meet payroll and operating expenses.
Snow Removal Company
Client: New Jersey-based snow removal company with $3 million in annual sales.
Situation: Six-year-old business had outgrown its line of credit with a local bank.
Need: The client needed a larger financing facility to support seasonal demands and accelerate cash flow.
Solution: Prestige provided a $750,000 factoring line to solve the immediate cash flow crunch and provide for seasonal sales fluctuations.
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Dental Hygiene Inventor
Client: Florida-based dental hygiene inventor.
Situation: After many years of development, a start-up with an innovative product was successful in reaching an exclusive agreement with a large national retailer.
Need: Due to the sales concentration risk, the client had difficulty obtaining traditional financing from a bank.
Solution: Prestige provided a factoring facility of $1 million without restrictive covenants related to the sales concentration account.