Client: Toy and electronics importer
Financial solution: Purchase order financing
Situation: Toys and consumer electronics importer and distributor approached Coral Capital for purchase order financing and Accounts Receivables to be able to deliver on new high volume purchase orders obtained from large regional retailer. The company had heavy customer concentration, was selling on long terms (more than 90 days) and high seasonality in their business.
The Deal: Coral Capital replaced existing AR lender, added purchase order financing with letters of credit, and negotiated an inter-creditor agreement with two separate banks to maintain term loan and inventory financing for the client, thereby adding substantially to the working capital availability.
The Result: The company has been able to expand its product line to be able to source from overseas suppliers that require Letters of Credit and is now competing for larger orders with nationwide retailers.