Millwork wholesaler avoids high interest with an $8M factoring line

AR Funding is proud to welcome this millwork wholesaler and distributor as one of its newest clients.

AT A GLANCE

Industry: Wholesale and distribution
Location: FL
Company size: ~$13M annual revenue
Reason for applying: Reduce borrowing costs
Cash available through factoring: $8M

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PROBLEM: High-interest financing impedes company growth 

Founded in 2015, this manufacturer and distributor of interior doors and mouldings got its start providing products to retailers in South and Central America. In 2022, the company expanded its operations into Florida, and quickly gained a reputation for its high-quality products and  unique, patented designs. 

The company used merchant cash advances (MCAs) to accelerate cash flow, but the costs were negatively impacting the company’s profitability and financial stability. As they planned for growth, they realized that their reliance on this type of financing was unsustainable.

SOLUTION: $8M factoring credit line

On the advice of their broker, the company met with AR Funding to discuss invoice factoring as an alternative to MCAs. We were able to offer them a monthly factoring line of $750,000. These funds have been used to pay off the high-interest MCA and finance the company’s rapid growth. 

The company has secured deals with two of the largest home improvement chains in the U.S. and is on track to double their revenues this year. 

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.