Manufacturing company increases working capital with a $1M factoring line

AR Funding is proud to welcome this games manufacturer as one of its newest clients.

AT A GLANCE

Industry: Manufacturing
Location: SC
Company size: ~$1M
Reason for applying: Increase working capital
Cash available through factoring: $1M

***

PROBLEM: Overleverage and slow payment cycles

Founded in 1997, this company designs and manufactures inventive indoor and outdoor games that can be found on the shelves of major retailers across the U.S. But with terms of net 60 or even 90, cash flow has always been an issue. 

The company was already fully leveraged, so additional loans were not an option. But with growing interest in their games and large orders on the horizon, they needed to access additional working capital or lose the opportunity to grow.

SOLUTION: $1 million factoring credit line

The company was initially reluctant to use factoring because of perceived costs and administration, but after talking to AR Funding, the owners realized that the costs were relatively low compared to other forms of alternative financing. They also realized that factoring would actually relieve some of their admininistrative burden because the AR Funding team provides collections and invoice management support.

Now the company has access to up to $150,000 per month in working capital, and they’re ready to supply the big customers in their pipeline.

This happy client received financing with help from Crawford Reeves, Regional VP, Southeast Region. Find out how much cash your company can access through invoice factoring. Talk to us.