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.
Custom Minted Coins and Medals
Client: Nevada Manufacturer of Custom minted coins and medals
Situation: Company had just filed bankruptcy and needed funds to continue production
Need: Debtor in possession financing
Solution: In less than a week, Prestige was able to fund the company’s accounts receivables while in chapter 11 bankruptcy so that they could fill their existing orders.
Food and Drug Manufacturer
Client: Food and drug manufacturer based in Upstate NY.
Situation: Client was receiving large orders to manufacture private label products for large distributors. They were unable to fill these orders without a financing partner.
Need: A credit facility to ensure that they would have availability to buy raw materials to create their product and fill their orders in a timely manner.
Solution: Within one week Prestige was able to finance their invoices and keep up with their growing pipeline.
Solar Panel Engineering Firm
Client: West Coast solar panel engineering firm
Situation: Client’s business had been funded by investors. As business grew rapidly, the investors required that the company obtain additional working capital for payroll and other day to day needs.
Need: Client was seeking a finance company that understood the nature of their business and who could finance invoices that are often billed in milestones.
Solution: Their investment banker brought the client to Prestige and within a week Prestige was able to put a facility in place that pleased their investors and gave the client the working capital that they needed to keep pace with their rapid growth.
Client: Northeast Staffing Agency acquiring another entity in the same industry.
Situation: Client was seeking acquisition financing and had been working with an asset based lender to finance the acquisition. The asset based lender was taking too long to close and the client was at risk of losing the opportunity to acquire the target company.
Need: Client needed financing in less than two weeks in order to keep the deal alive until they could close an asset based loan.
Solution: Within two weeks, Prestige was able to provide the financing needed to acquire the company and structured a bridge facility allowing client to graduate to ABL in 3 months.
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 and the nature of their billing 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; the appropriate firm for their needs. Prestige was able to replace their current factor, giving them access to greater liquidity by financing all of their receivables, including those that are billed in milestones.