Distribution company solves a cash gap with a $750K factoring line
AR Funding is proud to welcome this mechanical wholesale and repair company as one of its newest clients.
AT A GLANCE
Industry: Wholesale and distribution
Location: SC
Company size: ~$1.3 annual revenue
Reason for applying: Bridge the cash gap
Cash available through factoring: $750K
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PROBLEM: Payment slowdown creates problems
This wholesale and distribution company for motors was founded nearly 10 years ago, and a new owner bought the business in 2022. In addition to selling motors and accessories, the company offers motor repair, field services and 24/7 customer service.
The business has been consistently profitable, but as the new owner secured bigger customers, they were demanding payment terms as long as net 90+. The transition to lengthier payment cycles was putting a strain on the company’s cash flow.
SOLUTION: $750K factoring credit line
The owner had already secured a collateralized bank loan, but he needed additional cash to maintain adequate working capital. After taking out a costly merchant cash advance (MCA), the company’s broker recommended invoice factoring as an affordable alternative, and introduced the owner to AR Funding. We were pleased to be able to offer the business a $750,000 factoring line.
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.
