Clothing wholesaler improves financial resilience with a $300K factoring line
AR Funding is proud to welcome this wholesale company as one of its newest clients.
AT A GLANCE
Industry: Wholesale and distribution
Location: CA
Reason for applying: Build reserves and pay off debt
Cash available through factoring: $300K
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PROBLEM: Debts and a slow order-to-cash cycle create challenges
Founded in 2018 by a husband-and-wife team, this company manufactures and distributes fashion clothing for men, women, and children. The company must pay upfront for overseas third-party manufacturing, international shipping, and local third-party warehousing before the final product can be shipped to customers and invoiced, which has historically placed a strain on its finances.
After a slow couple of years, the company took out a sizable line of credit and an SBA loan. The combination of company debt, costly outlays, and lengthy payment terms was negatively impacting the business’s financial health.
SOLUTION: $300,000 factoring credit line
The owners began searching for alternative financing options that could help them stabilize their cash flow and begin paying off their loans. They educated themselves about factoring and decided to reach out to AR Funding online. We were delighted to be able to offer them a factoring facility of $300,000.
Now they are paying off their debt and can smooth out the company’s cash flow so that they can be ready to embrace new opportunities for growth.
This happy client received financing with help from Courtney Moore, Regional VP, West and Northeast. Find out how much cash your company can access through invoice factoring. Talk to us.
