TCJ Case Study

Importer & Distributor of Biodegradable Cutlery

 
 

ABOUT THE COMPANY

HQ Location: Northeast, United States
In Business For: 10 years
Management: Experienced in industry; operating new venture
Customer Base: US-based redistributors of products, with about 80% of products being drop-shipped 

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THE CHALLENGES

Customer Concentration: Company had six primary customers, which represented 70% of their business. 

Market Expansion: Company was looking to enter e-commerce space, but needed to build inventory without incoming receivables.

Foreign Supply Chain: All products were sourced from suppliers in mainland China, creating a long cash-to-cash cycle gap.

Existing Financing: Company had a financing relationship with a factor, which was not advancing a lot on their receivables and did not lend on inventory. This created significant cash constraints.

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THE SOLUTION

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. 

 
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