Marco Financial delivered a $2 million expandable receivables-based finance facility for a Midwestern domestic distributor of personal protective equipment.
The distributor is a national source for hospitals and multi-facility healthcare organizations while medical-provider protective supplies such as sterile gowns, gloves and masks are still in short supply.
“Our client told me that his growth was going to significantly surpass his ability to financially support the orders he was receiving since his payment terms to customers was tying up his cash flow. Typical POs are over $1MM and at any point in time he has two to three of these awaiting fulfillment. I recommended our factoring facility as a perfect fit for his needs, and we designed it to grow along with the expansion of his business,” Barry Kastner, executive vice president and senior managing director at Marco Financial, said.
“When Barry presented this opportunity to Marco just two weeks ago, I saw a prototypical factoring opportunity with a client that has little financial history but selling to multibillion-dollar medical centers and hospital organizations. We built our underwriting on the balance sheets and P&Ls of these huge businesses/customers and easily qualified this client for the financial fuel to put his growth into high gear. Under normal circumstances, our typical transaction involves cross-border and possibly multi-currency structures; however, this being fully U.S. domestic was a pleasant change and took extraordinarily little time to underwrite and close,” Fred Leder, chief commercial officer and senior vice president of operations at Marco Financial, said.
“Marco puts together customized financial solutions for business that are growing and that sell to creditworthy customers. As specialists in factoring, we know how to bend, mold and shape structures within the overall factoring framework to accommodate many unusual and seemingly non-qualifying situations. Marco’s highly experienced team takes the approach of saying ‘how’ versus ‘no.’ We are problem solvers.” Peter Spradling, chief operating officer at Marco Financial, said.
