TCJ Case Study
Consumer Products Manufacturer and Distributor
ABOUT THE COMPANY
HQ Location: West Coast (Pacific)
In Business For: 5+ years
Annual Revenues: $15M+
Management: First-time entrepreneur
Customer Base: Large retail businesses and big box stores
Liquidity Issues: The company had a strong balance sheet but no cash due to stretched A/R and long inventory delivery times.
Unbankable: Banks did not want to finance the company due to historical performance not supporting current growth.
Cash Flow Issues: Company had to pay its foreign manufacturer 90-120 days prior to getting paid from its customers. This long cash-out to cash-in cycle created 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.