Prestige Capital provided $2.5 million in funding to a California-based private label organic baby food manufacturing and co-packing company that needed a working capital line to increase volume in order to add additional product lines to its offering.
The company previously secured a credit facility based on real estate and machinery from its bank, but a prospective A/R lender it was hoping to receive funding from backed out at the last minute.
“We received a call from the inventory lender who knew Prestige could keep the deal alive and close it fast,” Stuart Rosenthal, president of Prestige Capital, said. “When banks are not able to provide working capital on a business’s accounts receivable, companies like ours are able to fill the gap. This is what we did for this deal.”
Access to this funding allowed the organic baby food company to grow with multiple lines of baby food and no limits on its cash needs.
