Wholesale company solves cash flow issues with a $5 million factoring line

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

AT A GLANCE

Industry: Wholesale and distribution
Location: LA
Company size: ~$4M annual revenue
Reason for applying: Cash flow issues
Cash available through factoring: $5 million

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PROBLEM: A four-month payment gap

This coffee importer and wholesaler has brought Honduran specialty coffee beans to the U.S. for nearly 30 years. Known for its premium product and sustainable practices, the company business has grown steadily. In 2024, the company generated more than $4 million in revenue and maintained a staff of 10.

While business is good, the payment cycle can take up to four months. In the meantime, the company must pay up front for the product as well as shipping, storing, and distribution costs. With six warehouses nationwide, the company needed to accelerate cash flow to finance continued growth.   

SOLUTION: $5 million factoring credit line

The owner mentioned his cash-flow challenges to his business mentor, who suggested that he talk to AR Funding about invoice factoring. After conducting a credit review of the company’s customers, AR Funding was able to extend the owner a $5 million factoring facility that will accelerate cash flow by 30-90 days. 

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.