Having exhausted personal funds, credit cards, and small family loans, they recognized the need to find an outside lender for working capital.
Background
A local food grower realized the accounts receivable and inventory growth resulting from new accounts would exceed their current funding capacity and create liquidity problems in paying vendors. Having exhausted personal funds, credit cards and small family loans, they recognized the need to find an outside lender for working capital.
Our Solution
Management’s prior success in achieving steady revenue growth gave the Business Development Company confidence the grower could adequately service a $75,000 asset-based line of credit and $250,000 of term debt.
Results
The company has continued to thrive, taking on distribution of other growers’ produce to its chain grocery customers. The Business Development Company has facilitated that growth with successive increases to the line of credit limit – now $300,000.
This working capital support has permitted management to realize five-fold growth through a combination of new customers and an expanded East Coast presence.