Industry: Beverage Distribution.
Facility Limit: $400K.
Background:
This start-up supplies premium, non-alcoholic beverages to a network of distributors. The popularity of the products supplied by the organisation has risen continuously since the business was established. The directors proactively sought a working capital solution to keep pace with expected growth.
The solution: factoring.
Factoring is advantageous for start-ups because future prospects and current activity are generally regarded as more important than past performance and unlike traditional finance options there is no need for owners to offer personal property as security.
A FactorONE facility provides an immediate cash injection that can be used to purchase more stock, pay wages and regularise outstanding creditor payments. Moving forward, factoring provides the necessary working capital to cover day-to-day expenses that put a strain on cash flow. The funding available grows with business performance, so cash is available to meet payment obligations as and when they fall due.
The directors of this start-up can now focus on winning new contracts, instead of cashflow concerns. This gives them a distinct advantage over competitors who do not have the same buying power as their financing arrangements are more rigid.
