Gateway Commercial Finance, a nationwide provider of invoice factoring and asset-based lending solutions, provided a $1.25 million invoice factoring facility to AGV America, a Texas-based provider of autonomous robotics and warehouse automation solutions.
“We made a strategic decision not to be captive to a single equipment manufacturer,” Michael Jones, president of AGV America, said. “That independence allows us to recommend and integrate the technology best suited to each customer’s operation. As a result, we have become a one-stop automation resource for manufacturers and distributors throughout our region.”
Gateway’s factoring facility replaced a traditional line of credit from a local bank that provided limited borrowing availability against invoices carrying payment terms of up to 90 days.
“Many of our customers are Fortune 500 companies, but the strength of those customers did not materially increase the availability under our bank line. Gateway understood our business model and recognized the value of our receivables,” Jones said.
“This transaction demonstrates how invoice factoring can supplement or replace an inadequate bank credit line and provide meaningful additional liquidity to a growing company,” Marc J. Marin, managing director of Gateway Commercial Finance, said. “By providing funding availability on eligible invoices with payment terms of up to 90 days, we were able to unlock working capital that had previously been unavailable. The new facility will help AGV America maintain consistent day-to-day cash flow while continuing to pursue larger opportunities.”
