CASE STUDY: Cosmetic company secures sustainable growth capital, while maintaining bank line with working capital provider 

Estimated reading time: 3 minutes


Credit facility limit:

General description:

Cosmetic and skincare product manufacturing

State of formation:


Customer type:

Major retailers including Walgreens, Costco, and Target


This Florida-based cosmetics manufacturing company had the chance to pursue new sales opportunities with two major retail giants. With a focus on cosmetic and skincare products, the company had already established itself as a supplier to well-known retailers such as Walgreens, CVS, Sephora, and Ulta. With a bank line in place, the company had recently completed approximately $4.5 million in business the previous year and was preparing to expand in 2024. The company management team was driving growth when it secured purchase orders with two major retailers, marking a milestone in its business journey.
Despite the company’s success, the existing business bank line from a regional bank was not sufficient to support the increased volume of production and demand resulting from the new contracts. Recognizing the limitations of the regional bank in providing a larger line of credit, the company was referred to our firm that could offer a flexible and non-dilutive financing solution tailored to its needs.

Proposed Solutions

United Capital Funding (“UCF”) proposed an asset-based, accounts receivable financing facility; which delivered a highly flexible working capital structure that is sufficient and flexible enough to grow along with their current increasing demand. Through this form of financing, the company was able to:

1. Maintain their long-standing relationship with their bank

2. Secure an adequate credit facility collateralized by their accounts receivable; then they could have otherwise achieved by leveraging their current balance sheet under their existing traditional revolving line of credit.

3. Increase liquidity to support new purchase order demand without raising dilutive equity capital.

4. Expand at an integral part of the company’s life cycle without restrictive covenants.

5. Decrease their overall Days Sales Outstanding by working with an institution that has been in business for 25 years supporting its customers with professional receivable management services.

6. Reduce senior management’s time and energy on cash flow management and therefore, allowing greater attention on growing revenues and ensuring customer satisfaction.


The company accepted UCF’s proposed terms and was successfully underwritten and approved. The collaboration with the financing firm not only addressed the immediate funding needs of the company but also positioned it for sustainable growth and success in the competitive cosmetics market. By working with UCF, our customers almost always gain the additional working capital necessary to support continued growth and seek additional business in new verticals and markets.

Connect with United Capital Funding

Please fill out the form below and a representative will be in touch with you. 

By providing your contact information you are authorizing United Capital Funding, or its affiliates including Gulf Coast Bank & Trust, Amerifactors, Gulf Coast Business Credit, KLC Financial, Phoenix Capital Group, Seven Oaks Capital Associates, and Spectrum Commercial Services to contact you. Authorization includes the use of text messaging and automated telephone dialing systems in connection with calls made to the number you provide. Please contact us at anytime to change your preferences. Additional data rates may apply. 

By submitting this form, you acknowledge you are over the age of 13 and approve submission of the above information.