Crossroads Financial provided a $1.8 million inventory revolving credit facility for a shoe retailer.
The company was founded in 1948 and occupies 12 retail locations between the San Jose and San Diego regions of California. It had experienced rapid growth over the last few years and, as a result, the company was struggling with cash flow issues and had taken on several amortizing merchant cash advance loans.
The company had funds tied up in inventory since the stores needed to be continuously stocked. Crossroads was approached to leverage its inventory to pay off the high interest merchant cash advance loans and also to pay down supplier payables. Crossroads was able to provide a more traditional revolving line of credit with no amortization and interest only payments.
