Mailbox manufacturer adopts a better business model with a $750K factoring line

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

AT A GLANCE

Industry: Manufacturing
Location: IL
Reason for applying: Business shift from retail to wholesale
Cash available through factoring: $750K

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PROBLEM: A shift away from DTC model creates cash woes

Founded just six years ago, this company has reinvented the ordinary mailbox to give it more durability, space, style, and curb appeal. Today, their distinctive mailboxes can be found in front of homes and businesses across the country. 

The company recently decided to change the business model from DTC (direct to consumer) to wholesale. The change enables them to redefine their revenue potential, but it also creates a much wider cash gap as they move from payment upon purchase to net 90 or even longer payment terms.

With heavy up-front costs for materials, manufacturing, freight, and warehousing, they needed to find a way to accelerate their cash flow as they transitioned to a new business model. 

SOLUTION: $750K factoring credit line

Since the company didn’t qualify for bank loans, the company’s broker suggested invoice factoring as a sustainable option for freeing up working capital. The broker recommended AR Funding, and we were able to extend a $750,000 factoring facility to ease the cash gap. 

Most recently, the company signed a multinational retailer as a client and are on track to meet their ambitious revenue goals. 

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.