Coral Capital Closes Factoring Facility to IT Provider
Coral Capital Solutions closed a $24 million factoring facility to a provider of custom computing infrastructure platforms including network servers, storage, OEMODM appliances, and embedded systems. The facility will allow the California-based company to rapidly grow its sales across the U.S.
The business has a full spectrum of customers from venture backed startups to fortune 500 high-tech based companies. While management was trying to manage cash-flows with its asset-based bank line, it was struggling to meet business demands for its product and services. This company is uniquely positioned to capture significant market share if it could secure the right financing partner to support the business.
Coral Capital was able to establish a factoring facility to better match the client’s expansion needs, providing both flexibility and a high level of personal service with a customized financing solution.
“This IT hardware provider is very successful at building complex platforms to serve a broad customer base. Due to the rapid expansion in silicon valley backed start ups that are looking for ever more sophisticated technology, there is a growing demand for the company’s customized product offerings. We are pleased to enhance management’s capability to accept larger contracts for complex hardware and network systems,” stated Rishi Kumar, CEO of Coral Capital Solutions. “By expediting the its cash flow, the company will now be better positioned to order sufficient quantities of components to build customized platforms, and meet shipping deadlines to fulfill new customer orders.”