Kathleen BarryComment

From Strained to Success

Kathleen BarryComment
From Strained to Success

In this case study, learn how The Credit Junction helped a consumer products manufacturer and distributor receive financing despite their strained cash flow. 


ABOUT THE COMPANY 

 

HQ Location: Pacific, United States

In Business For: 5+ years

Annual Revenues: $15M+

Management: First-time entrepreneur

Customer Base: Large retail businesses and big box stores

consumer product map
 

THE CHALLENGES 

 

Lack of Liquidity: Company had a strong balance sheet but no cash due to stretched A/R and long inventory delivery times.

Not Bankable: Banks would not finance the company because their historical performance did not support their current growth.

Cash Flow Strain: Company had to pay foreign manufacturer 90-120 days prior to getting paid from customers. This long cash to cash cycle put a strain on their operations.

Current Asset Issue: Much heavier inventory than A/R concentration on their balance sheet.

consumer product challenges
 

THE SOLUTION 

The Credit Junction worked closely with the company and their management to craft a financing solution that met both their short and long-term needs.

 
consumer product solutions