CASE STUDY: Fortune 100 company’s certified vendor needed capital to meet growing demand


Estimated reading time: 1 minute

Background

General description:
Manufacturing and selling machine parts

Company structure:
Corporation

State of formation:
California

Year of formation:
2016

Customer type:
Power companies

Issue

The company was very profitable but experienced hyper growth. Its unique ownership structure made it difficult to find an ideal financial solution and traditional bank financing was unresponsive. Other circumstances included:

  • Increase in shipping and material cost,
  • Increase in demand,
  • Expectation to increase volume by 50%,
  • And recent designation as a certified vendor for a Fortune 100 company.

Proposed Solutions

United Capital Funding proposed its factoring services to alleviate the road rash associated with hyper growth. Factoring would provide the following benefits:

  • Advance on the invoice amount (typically 80% of the invoice value)
  • Comprehensive accounts receivable management and maintenance of payment recovery and outstanding invoices.
  • Credit investigation of future customers
  • Online reporting available through CADENCE

Conclusion

The company accepted the proposal and was approved for factoring with United Capital Funding. With factoring in place, this company can now access capital from its own invoices and use it to meet the growing demand for its product.


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