Industry: After Market Automotive Accessories Business
Situation: The Automotive Business was in a turnaround situation and looking for flexible Accounts Receivable Funding. The company has a selling product line of aftermarket automotive accessories: car seat covers, steering wheel covers, seat cushions, and car decals to approximately 100 different retailers, including major retailers such as Wal-Mart, AutoZone, O’Reilly, Advance Auto and Pep Boys. They have patents on its products, most of which imported from manufacturers in China, and recently added a custom product line made in the USA.
At the time that Coral Capital initiated accounts receivable financing, the business was in a turnaround situation. Besides surviving the economic turmoil, management was looking to save as many jobs as possible while bringing the Company to profitability. With fluctuating sales, management needed the flexibility that Accounts Receivable funding provides. Coral Capital financed over $35 million of receivables and the Company further benefited from Coral Capital’s ability to work with other lenders who financed additional assets. Coral Capital’s ability to support a massive number of small invoices and speedy funding on a daily basis with no interruption coupled with its commitment to supporting the Company’s growth was instrumental in the success of the Company.
The Deal: Coral Capital Solutions supported the management team and its plans to build up the business. Coral Capital added the confidence that a management team needs at times of growth.
The Result: The Company saved jobs, added customers and continued to bring new and innovative products to the automotive market in the USA and Canada and is confident that it has the funding it needs to continue to grow.
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