The Singing Machine Company announced it has secured a factoring and loan agreement with Crestmark Bank. The terms of the agreement will provide the company with up to $5 million in accounts receivable financing.
The facility is based on borrowing against eligible domestic accounts receivable which will allow the company to significantly improve its cash flow as it enters the holiday season. The terms of the two-year agreement provide Singing Machine with an immediate cash advance on its eligible accounts receivable and will provide the company with improved working capital to operate and grow the business.
“We have been actively seeking financing for the company and are extremely pleased that Crestmark has recognized our improved financial performance and feel confident with the future growth of the company,” commented Lionel Marquis, CFO. “The company has done an impressive job to get back to profitability and this factoring deal represents a big milestone in our plans for the future.”
Gary Atkinson, CEO added, “Having this loan agreement in place will provide us with the flexibility to grow our domestic business and give us the resources to strengthen our relationships with our overseas vendors.”
Crestmark provides financial solutions for small- to medium-sized businesses.
Incorporated in 1982, The Singing Machine Company develops and distributes a full line of consumer-oriented karaoke machines and music.