Cement distribution company accelerates growth with a $5M factoring line
AR Funding is proud to welcome this distribution company as one of its newest clients.
AT A GLANCE
Industry: Wholesale and distribution
Location: TX
Reason for applying: Accelerate growth
Cash available through factoring: $5 Million
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PROBLEM: After a rocky start, company needs to fund rapid growth
Founded in 2023, this cement mixing company had a rocky first year as it refined its unique process for precision-mixing concrete on site for its customers. But in recent months, business has taken off, as a new stream of customers who build data centers in rural areas began flocking to the company to secure their services.
Suddenly, the company found itself with nearly limitless opportunities for growth. But with no real track record and a heavy concentration in a few big clients, the owners couldn’t obtain loans or lines of credit to finance the steep growth curve.
SOLUTION: $5M factoring credit line
The owners began talking to trusted members of their business network to explore alternative financing solutions. A lender who was unable to help them directly suggested they talk to AR Funding about invoice factoring, since the company had significant funds tied up in accounts receivable (AR).
Based on the creditworthiness of the company’s two main customers and a very healthy AR, we were able to offer the company a factoring facility of up to $5 million. Now the company can turn their AR into cash instantly to fund rapid growth.
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.
