The Company: A California-based importer and distributor of dried food products from Mexico and India. The company was founded by a food company executive who used his own knowledge to establish a new brand through major wholesale clubs and chain stores.
The Problem: This type of business is unusual because its products — which include dried mango, mandarin, and coconut—quite often have a short harvest season. Because of its seasonality, the company is required to pay the annual costs of the goods upfront.
After a few years of business, the business owner decided that partnering with a finance firm to accelerate payment to suppliers made sense as it could help them accelerate growth and expand their business.
The Solution: The Coral Capital Solutions team understood the business model and presented purchase order funding as a solution. Coral Capital Solutions was able to quickly establish a purchase order factoring structure and disburse the funding amount.
The Result: Coral Capital’s purchase order factoring provided the foundation to solidify new customer relationships and expedite purchase orders. Coral Capital provided ongoing working capital financing so that management could focus on fulfilling orders and growing the business.