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
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.
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.