Electronics distributor prepares for acquisition with a $7 million factoring line

 In Case Study

AR Funding is proud to welcome this industrial electronics company as one of its newest clients.


Industry: Industrial electronics distributor
Location: NC
Company size: $60M annual revenue
Reason for applying: Prepare for acquisition
Cash available through factoring: $7 million


PROBLEM: A need to demonstrate solid financials

With a 22-year track record of success and 600 loyal customers, this electronics distribution company was ready to take the next step toward continued growth with a private capital acquisition that would include erasing the company’s loan debt. However, as part of the due diligence process, the company needed to demonstrate a healthy cash flow that could continue to support rapid growth and expansion.   

SOLUTION: $7 million factoring credit line

The company’s term lender referred them to AR Funding, and we worked closely with them during the acquisition process to demonstrate their cash-flow potential, including conducting credit checks on the company’s customers, coordinating credit insurance, and managing the verification and collections process for the invoices being factored. Factoring will enable the company to accelerate cash flow by as much as 90 days and has helped them smooth the complicated logistics of the deal and achieve a successful acquisition.

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.

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