Bibby Provides Canadian Manufacturer with Factoring Facility
Bibby Financial Services announced that it provided a $1.5 million factoring facility to an Ontario, Canada-based manufacturer of plastic containers for the food industry.
The company is growing rapidly through new contracts with major U.S. food retailers and needs additional cash flow to fund its expansion.
“This client began manufacturing food packaging products in 2007 and has expanded substantially in the past two years,” said Bob Lall, managing director, Bibby Financial Services, Canada. “The company needed to invest in research and production to keep up with the growing demand for its products. However, its bank was unable to provide a flexible solution to support this extra expenditure.”
The company turned to Bibby Financial Services for a more flexible cash flow solution.
Lall said, “Factoring is more flexible than traditional financing because it’s based off of a company’s receivables, so as sales grow, so does the amount of funding available to you. Flexibility and local support are both critical during a company’s growth cycle.”