Blog articles discussing factoring companies, factoring loans, invoice factoring and all things related.
2015 has started out with strong momentum. We are seeing more funding requests than ever before. The small business pulse is alive and well and these entrepreneurs need capital to hit their business goals. Below are some recent examples of how our purchase order financing and factoring company lending affiliates made some goals attainable:
$500,000 Purchase Order Financing and Factoring Facility
A young company in the apparel industry is experiencing some explosive growth. Their sales to date have largely been online and on credit card terms with their customers. However, when a large national retailer came knocking, both the size of the orders and payment terms changed.
The company was excited to earn some shelf space with the powerful retailer, but how would they fill the orders, deliver on time and meet the retailers expectations? The company is new and growing and doesn’t yet have the capital reserves to meet the cost of the purchase orders (in this case $500,000 over the next 12 months).
Huntington Coast Capital found them the answer with one of our purchase order financing and factoring companies. As a new company, they didn’t have the time in business or financial strength for bank financing. They needed someone that could act quickly and fund 100% of the cost to the supplier. We procured the right funding and delivered in the time they needed us to. Result – they were able to fulfill the order and have others waiting behind it.
$150,000 Government Loan for a Retail Ice Cream Shop
A retail ice cream shop came to us looking for capital to expand their operations. They used their own funds for tenant improvements to their location, but were looking for additional capital to hire more staff and advertise in local media outlets.
A retail ice cream store naturally would not be a target for factoring companies. We were able to get them qualified under the low cost SBA Express Program. This program is currently at 6% and tied to the Prime rate. The short story is that the company will be able to expand operations to meet demand and take their business to the next level.
$5,000,000 Purchase Order and Factoring Facility
A contractor with an existing business came across an opportunity to fulfill a large order for a government entity. The work order entailed the need for salt to be used in the removal of snow on the road ways. The good news was that they would be selected if they could come up with the wherewithal to deliver the goods. The bad news was that they had two to a max of three weeks to show that they had the funding to deliver or another vendor would be selected.
The company first went to their bank to ask for a line of credit to fulfill the order. The bank, based on the relationship they had for years with the client, was able to provide a $1,500,000 line to assist in fulfilling the order. The problem was they needed around $4,100,000 for the initial round and the bank’s offer was substantially inadequate for their needs.
They called Huntington Coast Capital. We quickly knew who the select lenders were for this request. After interviewing three potential funding partners, the company selected one and were able to meet the order. The goods will be fully delivered by the end of this month.
Could your business use some flexible funding to boost your production? Are you frustrated with the underwriting guidelines of traditional lenders? If so, we would like to assist! Please contact us to discuss the details of your request.
To Your Success!
Patrick Zazueta | Founder
Huntington Coast Capital, Inc.