Crossroads Financial provided a $3 million inventory financing facility to a wholesaler of new and recycled plastic totes, steel drums and poly plastic drums that it sells to the oil and gas industry.
The client’s current factor had provided a substantial inventory revolver, but became more and more uncomfortable with its inventory position. The factor was interested in being taken out of its inventory exposure, while the client needed a more aggressive inventory loan for its continued business expansion.
Crossroads paid off the factor’s inventory exposure and provided an inventory revolving line of credit for the client. The latter gave the client additional working capital, while allowing the factor to focus on its core business.