LSQ originated a $15 million invoice finance facility for a Florida-based distributor of cellular phones and other personal electronic devices. The company will use the additional capital to support its growth trajectory after adding new product lines in the past 18 months.
“The company has seen an explosive uptick in business and as we have seen across a variety of industries, that puts a tremendous strain on cash flow and can slow down growth,” Renee Jackson, national sales director at LSQ, said. “For a company like this, an invoice finance facility is a great way to conquer those challenges and not add debt to their balance sheet.”
The distributor was introduced to Chris Collins, senior regional vice president at LSQ, by a partner in the financing provider’s banker referral network. This opportunity presented several challenges due to the foreign ownership of the U.S. operation of the company, along with the high customer concentration within its receivables base.
“We know banks are in transition when it comes to their credit appetite and are having to come up with creative solutions to maintain long-standing relationships with clients,” Collins said. “We are thankful for the referral and partnership to help serve this company and are honored by the trust that the banker and client have put in LSQ.”
