Industrial supply company manages debt with a $3M factoring line
AR Funding is proud to welcome this industrial supply distribution company as one of its newest clients.
AT A GLANCE
Industry: Manufacturing and distribution
Location: MS
Company size: ~$8M annual revenue
Reason for applying: Ease debt burden
Cash available through factoring: $3M
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PROBLEM: Overextension leads to high debt
Founded more than four decades ago, this company is a leading distributor of industrial materials, including gaskets, fasteners, pipes, and fittings. With a client list that includes blue-chip brands and solid revenues of $8 million per year, the company’s financials are strong and its prospects are good.
But in recent years, aggressive growth led the company to overleverage operations with a large line of credit and high-interest credit card debt. To grow more sustainably, the company needed to correct their debt-to-income ratio.
SOLUTION: $3M factoring credit line
The company’s broker suggested sitting down with AR Funding to see whether invoice factoring could help them accelerate cash flow and pay down their debt faster. We were pleased to be able to extend a $3 million factoring line to the company. This will enable them to pay off their debts within a few months, after which they can choose whether to continue factoring their invoices to accelerate their growth plans.
This happy client received financing with help from Brian Gullage, Regional VP, Southeast Region. Find out how much cash your company can access through invoice factoring. Talk to us.
