Collegiate apparel company funds growth potential with a $500K factoring line
AR Funding is proud to welcome this wholesale and distribution company as one of its newest clients.
AT A GLANCE
Industry: wholesale and distribution
Location: NY
Company size: ~$100K annual revenue
Reason for applying: Fund 30X growth
Cash available through factoring: $250K
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PROBLEM: College startup needs cash to fund explosive growth
This company was launched in 2024 after its founder, a college student, created a mascot design for a school sports team that became wildly popular. The founder used that initial success to start a business selling custom-designed promotional wear.
In year two of operations, the company quadrupled revenue and won several high-profile contracts. While early growth was funded with loans from friends and family, the next growth stage will require other, bigger sources of cash. Unfortunately, the company is too new to qualify for bank loans or lines of credit.
SOLUTION: $250,000 factoring credit line
The owner’s bank manager referred them to AR Funding to see whether invoice factoring could inject some much-needed cash into the fast-growing company. Based on the quality of their customer base, which included several Ivy League schools, we were able to offer the company a factoring facility of $250,000.
Now the owner has the cash flow needed to meet a projected revenue growth of $3 million in 2026, and according to his bank manager, the company may soon be in a better position to qualify for a bank loan in future.
This happy client received financing with help from Courtney Moore, Regional VP, Northeast Region. Find out how much cash your company can access through invoice factoring. Talk to us.
