Industry: Electronic Components Reseller
Situation: Two affiliated companies specialize in all facets of the electronics industry: commercial, military, aviation and telecommunication; selling to OEMs, contract manufacturers, sub-assembly houses and U.S. government agencies.
Company’s product line includes batteries/chargers, converters, capacitors, connectors and sockets, fuses, wires and cables, semiconductors and transistors, etc. They track over 2,000 vendor and OEM inventories worldwide.
One of the companies focuses on distribution of industrial electronics to high-tech OEM electronics, aviation, and military industries. Their product list includes electronic components, aircraft parts, industrial supplies, and component-tracking system.
Following a few years of downsizing, painful cuts in inventory levels and facilities, the existing lender was no longer capable of sustaining the business. Coral Capital offered a flexible AR Funding arrangement. Armed with the confidence that as long as the business generates receivables, the companies can maintain their financing, management accomplished a successful turnaround. Since they commenced accounts receivable financing with Coral Capital the companies had an opportunity to stabilize their respective businesses and management got back to focus on growth of the business.
The Deal: Coral Capital offered AR funding for both commercial and Federal government accounts receivable.
The Result: Since Coral Capital initiated its AR financing, the companies enjoy the stability of predictable cash flow and building up steady stream of orders, shipments, invoicing and collections.