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.
Novelty Product Manufacturer
Client: Massachusetts-based Novelty Product Manufacturer.
Situation: 11-year-old company was being liquidated by its existing lender.
Need: One of the company’s existing owners was seeking to acquire and re-start a profitable division of the company.
Solution: Prestige provided financing to fund the acquisition of certain property of the liquidating estate from the lender and support future growth.
Client: Florida-based call center with $15 million in annual sales.
Situation: A re-start of a company lacked financing for working capital needs.
Need: This fast-growing company was looking to keep its cash flow moving smoothly and did not want to dilute its ownership through equity financing.
Solution: Prestige provided a $1 million dollar factoring line with a tiered pricing structure based on volume.
Consumer Electronics Company
Client: Midwest-based consumer electronics company with $75 million in annual sales.
Situation: The bank for this eight-year-old seasonal business failed to close a new line of credit in a timely manner.
Need: The client needed bridge financing to fill the gap until permanent financing could be obtained.
Solution: Within five business days, Prestige provided a $5 million bridge facility to alleviate the timing pressure until the company’s bank could close the facility.
Architectural Design Firm
Client: Connecticut-based architectural design firm with $10 million in annual sales.
Situation: The six-year-old firm obtained a large project to design an amusement park exhibit which was billed on a progress basis with extended terms
Need: The client needed immediate access to cash flow for payroll and overhead expenses.
Solution: Within four business days, Prestige creatively confirmed payment with the customer and subsequently funded the initial phase of the project. That funding allowed the project to continue seamlessly.
Product Repair Company
Client: Long Island-based consumer products repair company with $5 million in annual sales.
Situation: The eleven-year-old company was previously funded by a private investor but needed an immediate capital infusion as it was on the brink of insolvency. The client and its advisors were deciding whether to file for bankruptcy or restructure out of court. The client was introduced to Prestige by its attorney who knew that Prestige has long history of success in providing financing to companies in financial distress.
Need: The client’s preference was to avoid a costly bankruptcy and select a financing partner which could work with the company as it navigated its way back to profitability.
Solution: In less than one week, Prestige funded a $2 million line, reduced the client’s cost of financing, and helped the client avoid filing for bankruptcy.