Crossroads Financial secured a new financing commitment for an additional $50 million from a private investment group. Crossroads lends capital through its direct lending platform to retail and e-commerce businesses, while also working in collaboration with A/R and factoring companies to provide reliable working capital solutions for wholesale businesses.
Crossroads provides standalone lines of credit backed by inventory and funds transactions starting at $500,000 with an advance rate of up to 85% of NOLV and no restrictions on A/R to inventory advance ratios. It aims to provide maximum liquidity to clients in the retail, e-commerce and wholesale space that are unable to obtain traditional bank financing.
Many small to medium-sized businesses lack the financial history or assets to secure an institutionally sized financing option regularly enjoyed by the big box stores. Inventory financing is especially useful for clients needing to pay suppliers before inventory has been sold, or who need to acquire new inventory to support customer demand. Inventory financing can also help mitigate seasonal fluctuations in cash flow.