Importer & Distributor of Biodegradable Cutlery
ABOUT THE COMPANY
HQ Location: Northeast, US
In Business For: 3 years
Management: Experienced in industry; new venture.
Customer Base: US-based re-distributors of products, with about 80% of products being drop-shipped.
High Customer Concentration: The company had 6 primary customers, which represented 70% of their business.
Looking to Enter New Markets: The company was looking to enter the online space to sell their products, but needed to build inventory without incoming receivables.
Foreign Supply Chain: All products were sourced from suppliers of foodservice items in mainland China, creating a long cash-to-cash cycle gap.
Existing Financing Relationship: The company had a financing relationship with a factor, which was not advancing a lot on their receivables, and did not lend on inventory, creating significant cash constraints.
The Credit Junction worked closely with the company and its management to craft a financing solution that met both their short and long term needs.