Sallyport Commercial Finance provided $1 million in combined financing to a Canadian importer of industrial pipes and flanges. The package is made up of $750,000 in accounts receivable funding and $250,000 in purchase order financing. The client will use the financing for ongoing working capital requirements.
An existing Sallyport client referred the importer, which had to pay suppliers in China while goods were making their way overseas, tying up working capital and impeding growth. Through the new financing, Sallyport now pays the importer’s suppliers directly, so the importer only needs to finance invoices once goods arrive with the debtor in North America.
“Having funded a division of the business for two years, we developed a strong relationship with the then logistics partner, who held the relationship with the Chinese manufacturers,” Calum Williamson, managing director in Canada and North American sales manager for Sallyport Commercial Finance, said. “When the model changed, we took on board the client to ensure cash flow and working capital remained strong within the company.”
