Challenge: The company, which provided food preparation and production company that has been in business for over 25 years. The company received new contracts and could not receive an increased bank line of credit to handle increased inventory supplies needs. Thus, it was looking for a way to receive additional working capital to buy more inventories to supply the new markets it was entering.
Solution: Through factoring, the company was able to accelerate their cash flow immediately when an order was filled and an invoice was produced. It did not need to wait 30,60 or 90 days for their customers to pay.
Results: By working with CFR, the company was able to quickly generate the working capital needed for new opportunities and their bank was able to maintain the balance of their banking relationship. The food sector industry is very competitive. By having the cash available quickly, the company has been successful in growing and expanding its food production company into new markets.