Daily News: September 12, 2016

FSW Provides $1MM Credit Line to Abbotford Plastics

FSW Funding provided a $1 million credit line to Abbotford Plastics. a second-generation, family-owned company that distributes plastic resin in the U.S. The company experienced rapid growth in 2013 and outgrew its bank line of credit.

While seeking a new lender, the owner decided to “bridge” the cash flow need by not paying employment taxes for a couple of pay periods. The owner figured this would be a short-term solution and that the company would pay the back taxes within a month or two.

Unfortunately, it took a while to find a new lender and, in the meantime, the IRS filed a lien against the company’s assets. The tax lien put Abbotford Plastics in default with its current bank, which meant a new lender had to be found quickly or Abbotford Plastics would be forced to close its doors for good.

Knowing traditional lending wouldn’t work with the IRS tax lien in place, Abbotford Plastics was referred to FSW Funding. FSW Funding was able to approve Abbotford Plastics for a credit line of $1 million, which was used to pay off the IRS tax lien and to allow the company to fulfill new orders. FSW Funding’s line of credit has helped the company’s revenue grow 13% in 2014 and 22% in 2015.

FSW Funding offers asset-based factoring lines of credit to small businesses.