Crossroads Provides PO Facility to Electronic Components Manufacturer
Crossroads Financial announced it provided a $4 million purchase order financing facility for the benefit of a manufacturer and distributor of electronic components used in aircraft systems.
Faced with a large increase in order volume from three Fortune 500 customers, the company turned to Crossroads, who initially provided a $4 million advance to their supplier, creating an opportunity for the client to fill these orders. Through this initial order, the company has become a market leader in obsolescence management to high reliability system manufacturers designed to help minimize the impact and risk associated with end of life of key electronic components. Crossroads will be supporting the ongoing needs of the company as they experience rapid growth from a new product launch.
Crossroads teamed up with a factor who is providing a $7.7 million A/R factoring facility.
“This transaction speaks to the flexibility of Crossroads Purchase Order Financing program” said Jim Rothman, president of Crossroads. “Crossroads was able to quickly address a massive issue for this company which could not be solved by a traditional lender. It took components of our PO finance program and blended it with inventory needs of the client for creative solution to our client’s distinct needs.”