Daily News: August 12, 2016

FSW Provides $2MM Factoring Facility to Just Fun Toys

FSW Fundingg provided a $2 million factoring facility for Just Fun Toys (JFT). FSW partnered with a purchase order lender who provided an additional $1 million line of credit to further support the company’s growth.

Just Fund Toys was started in 2011 by two college buddies who were selling liquidated toys at swap meets. Sales took off and the partners decided to quit their day jobs and focus on manufacturing and selling of toys. Soon JFT was getting purchase orders from household names such as Wal-Mart and Bass Pro. JFT was on the cusp of hitting it out of the park but soon ran out of cash to fund working capital.

Growing a business from zero to $25 million a year in under five years is quite a feat, but it comes with complications. JFT had to pay its manufactures before the goods were shipped, and JFT’s customers paid their invoices in 60-70 days. This caused serious cash flow issues and halted production.

JFT was referred to FSW Funding because the partners realized traditional lenders wouldn’t be able to provide a large enough credit facility. The total credit facility was approved in days not weeks which kept JFT’s cash flow humming along.
FSW Funding was founded in 2001 with the goal of offering flexible and affordable asset-based factoring lines of credit to small businesses.