Machining company attracts big customers with a $3 million factoring line
AR Funding is proud to welcome this machining company as one of its newest clients.
AT A GLANCE
Industry: Manufacturing
Location: KY
Company size: ~$1 million annual revenue
Reason for applying: Cash crunch caused by lengthy payment terms
Cash available through factoring: $3 million
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PROBLEM: Lengthy payment terms inhibit cash flow
Founded in 2020, this machining company provides equipment and machine maintenance, repair, installation, and rebuilds to industrial plants in the state of Kentucky.
With an owner boasting 25 years of industry experience, the company attracted large plants that expected favorable payment terms. The combination of high up-front costs for tools, supplies, and skilled workers and gaps of up to 90 days between invoicing and payment was placing a strain on the company’s cash flow.
SOLUTION: $3 million factoring credit line
The owner approached AR Funding to see whether invoice factoring could help them stabilize the company’s cash flow. AR Funding was able to offer the company a $3 million factoring credit line, which enabled them to fund their expanding business while continuing to offer favorable payment terms of 60-90 days.
This happy client received financing with help from Darren Wright, Regional VP, Central Region. Find out how much cash your company can access through invoice factoring. Talk to us.
