Financial Solution: Funding purchase orders
Client: Start-up Consumer Products Company
Situation: Principals of this startup invented, designed and engineered a unique, modern, colorful and multi- function handheld rechargeable electric can opener that is being sold in the United States. The consumer market potential for this product is significant as there are over 100 million households in the U.S. alone and every modern household owns at least one can opener.
The Deal: After four years in development, the principals were ready to start production, shipment, and sales. The company received orders from QVC and needed financing for production with their overseas supplier. Coral Capital responded to the challenge swiftly, providing a Purchase Order and Accounts Receivable finance facility in short order.
The Result: Coral Capital provided Purchase Order Financing up to 100% of the payment to suppliers against confirmed POs through letters of credit, or cash against documents in order to facilitate delivery of the goods directly to the customers. This enabled the Company to launch its operations by shipping products to QVC directly from an overseas manufacturer in a timely fashion.
