Coral Capital Funds $3MM PO, Factoring Facility to Importer
Coral Capital Solutions, a provider of financing solutions to small and middle-market businesses, announced it provided a $3 million purchase order and factoring facility to an importer of food service products. The facility will allow the New York-based company to pursue new opportunities and provide support for future growth.
The company imports disposable food service products such as plastic cutlery, gloves and food containers and sells them to large food service distributors throughout the U.S. It had an opportunity to grow by leveraging existing relationships in the food services industry to penetrate untapped customer segments, but the strategy required capital that the company lacked.
The company’s overseas suppliers required cash up front and its large customers required extended payment terms, creating a cash-flow squeeze. Its existing Midwestern factor could not accommodate their expanded needs, and the company turned to Coral Capital Solutions for purchase order and accounts receivable financing.
“We were able to provide 100% of the cost of the purchase order through cash against documents in order to facilitate delivery of the goods to their customers,” said Einat Steklov, president of Coral Capital Solutions. “In addition, we were able to provide ongoing working capital financing. The Company now can take on new customer relationships and significantly grow their business.”