TCJ Case Study
Consumer Products Manufacturer and Distributor
ABOUT THE COMPANY
HQ Location: Pacific, United States
In Business For: 5+ years
Annual Revenues: $15M+
Management: First-time entrepreneur
Customer Base: Large retail businesses and big box stores
Lack of Liquidity: Company had a strong balance sheet but no cash due to stretched A/R and long inventory delivery times.
Not Bankable: Banks would not finance the company because their historical performance did not support their current growth.
Cash Flow Strain: Company had to pay foreign manufacturer 90-120 days prior to getting paid from customers. This long cash to cash cycle put a strain on their operations.
Current Asset Issue: Much heavier inventory than A/R concentration on their balance sheet.
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.