Crossroads Financial provided a $3 million inventory revolving line of credit for the benefit of a toy wholesaler specializing in remote controlled products, such as boats, cars, helicopters and drones.
The California company was founded in 2004, selling toys through E-Bay and other auction sites. The rapidly growing business now sells its variety of products to independent retailers and chain stores across the country, grossing over $40 million in revenue in 2016.
Crossroads was introduced to the company by its current factor. The client was looking for additional financing against its inventory. At times the factor had provided an accommodation loan against the inventory in excess of $2 million, but was uncomfortable in continuing with inventory advances. The factor, therefore, decided to introduce the client to Crossroads. Crossroads funded in less than three weeks, taking the factor out of its inventory position and providing around $2 million of additional working capital for the client.