Consumer Electronics Distributor Case Study
ABOUT THE COMPANY
HQ Location: South Atlantic, United States
In Business For: 18 Months
Annual Revenues: <$5M
Management: Experienced in Industry
Customer Base: Exclusive distributor of product to big-box stores in US, Canada, and Latin America.
Insufficient Inventory for Orders: Management had secured new large purchase orders from big box retailers, but had insufficient inventory to fulfill them.
Long Cash to Cash Cycle: Long time period between provision of final goods, and collection of payment for the good from the retailers.
Reliance on Future PO’s: The company’s future financial performance was dependent upon their ability to build sufficient inventory to support the holiday season.
Lack of Working Capital: Company had identified major areas for innovation, but did not have sufficient capital to pursue them.
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.