Coral Capital Solutions, a provider of financing solutions to small and middle-market businesses, announced it provided a $50 million factoring facility to a distributor of dairy products. The company was founded in 1923 and is a third-generation, family-owned business that distributes milk and refrigerated perishable products. The facility will allow the company to expand their business and support future growth.
As part of its growth strategy, the company wanted to expand its geographical reach and target larger customer relationships within these expanded markets. This strategy required additional capital as the customers required longer payment terms and the company needed to increase its financing facilities to cover the gap.
“We were able to negotiate a subordination agreement with the various counterparties of the company and double the amount of financing available to the business,” said Einat Steklov, president of Coral Capital Solutions. “The company has been able to increase its purchasing power to fill customer orders as a result of the increased availability and have the working capital it needs to allow for longer payment terms from new customer segments.”
With the factoring facility in place, the company is looking to expand further by adding new products to its traditional dairy goods.
Coral Capital Solutions provides financing solutions including factoring, asset-based lending, purchase order and trade finance products.