Client: Distributor of Dairy Products
Industry: Dairy Products
Situation: Third-generation, family-owned business that distributes milk and refrigerated perishable products. It was founded in 1923 as a retail milk home delivery business, and in 1979 shifted to wholesale milk distribution while gradually discontinuing retail operations. Recently, the company wanted to expand their geographical distribution and support sales to larger customers. However, these customers required longer payment terms and the company needed financing to cover the gap.
The Deal: Coral Capital Solutions was able to negotiate a subordination agreement with counterparties of the company, therefore double the financing available to the business through accounts receivable financing facility. Within a few days, Coral Capital notified hundreds of customers; and set up the platform for financing thousands of invoices and collecting hundreds of checks each week.
The Result: Selling accounts receivables increased company’s purchasing power. Armed with additional predictable cash flow, management is looking to expand its company’s sales and add new products to its traditional dairy goods.