Consumer Electronics Distributor Case Study



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. 

challenges aero



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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