Crossroads Closes More than $1MM for Jewelry Manufacturer
Crossroads Financial provided a $750,000 inventory financing facility and a $500,000 purchase order financing facility for the benefit of a manufacturer and wholesale-distributor of jewelry. The company, needing to exit an existing banking relationship, was referred to a factoring company by the incumbent bank.
Without sufficient capital to take out the bank, the factor brought in Crossroads to generate availability against the company’s inventory, allowing for the takeout of the bank’s loan and provided working capital for the business going forward. Crossroads is also generating additional working capital through purchase order financing as many of items are presold.
“This transaction perfectly describes Crossroads value proposition to the many lender we work with,” described Darren Palestine, director of Sales for Crossroads Financial. “We want to add value to any factor or receivable lender who might need an Inventory or PO Financing component to make their deal happen. We were able to provide a solution for the factor, the bank and create an opportunity that might not have been possible without our help.”