Coral Capital Closes Factoring Facility for Online Marketer
Coral Capital Solutions announced that it provided a $1 million factoring facility to an online marketing and lead generation brokerage company for working capital needs and to support growth.
Unlike other Internet lead generation companies, most of the company’s revenue is generated on a “cash per activity by user” basis, a higher quality lead than just pay-per-click. With the economic downturn, the company sustained a significant drop in revenue in 2009 and 2010, and eliminated several lines of business in order to regain profitability.
In the last several months as the company secured more business, the founder realized that the most significant hurdle for growth was lack of cash-flow.
“We put our team together to learn the company’s business model and created a mechanism to verify invoices without requiring calling customers,” said Einat Steklov, president of Coral Capital Solutions. “Since the company maintains a proprietary electronic platform with abundant digital data related to company’s performance of services and billing to its customers, we can quickly analyze the information and match activity to invoices when making daily funding decisions, resulting in a faster verification process.”
Coral Capital Solutions provides financing solutions to small and middle-market companies in a wide variety of industries throughout the U.S. and Canada.