Crossroads Financial provided a $1.1 million inventory revolving line of credit for a wholesaler of heat activated and battery-operated warmers for the hands and feet.
The company is very seasonal and needed additional availability to ramp up its inventory for the selling season. It also needed funds for working capital.
Crossroads provided a stand-alone inventory revolving line of credit, partnering with a factor for a full financing facility. Although the factor’s initial advance was less than $100,000, it expects to factor in excess of $8 million in receivables over the next 12 months.
This encapsulates Crossroads’ partnership appeal, as the advance against inventory is not limited by the amount of outstanding receivables, allowing clients like this one to have access to capital in the off season.