Bibby Financial Services announced that it funded a Quebec, Canada-based company that packages and distributes cigars and similar products to retailers.
The business had been profitable, but changing legislation and tax issues resulted in a temporary dip in revenue. The company responded quickly to return to profitability, adjusting its business model to focus on its most lucrative product, high-end cigars. Despite these changes, the bank asked the firm to repay its line, leaving it in need of a cash-flow solution.
“Factoring, or accounts receivables lending, is more flexible that bank lending,” said Bob Lall, managing director. “We base our lending criteria upon the quality of a company’s customers, not personal credit scores or trading history. This enables us to provide cash-flow solutions to companies that might not qualify for a traditional bank loan, like seasonal businesses, companies that are growing quickly, or those, like this client, that have hit a bump in the road.”
Lall added: “These company owners are experienced, know their market and have great relationships with their vendors; they needed a cash-flow provider to help them overcome this hurdle. At Bibby Financial Services, we help companies in these situations by providing an immediate cash injection based on their outstanding invoices and an ongoing cash-flow solution.”
This company will use the accelerated cash-flow to grow its business and fund day-to-day operations.
Bibby Financial Services is a worldwide market leader in business cash-flow solutions to small and medium-sized companies. Its product portfolio includes accounts receivables finance, factoring, export finance, purchase order finance and others.