Sallyport Commercial Finance funded a $1.5 million accounts receivable facility for a supplier in the floral industry. The company sought funding to manage the seasonal nature of their business, with over half of their sales occurring within a two-month period starting in October.
Referred by a broker, the client needed working capital to bridge cash flow gaps created by offering large prepay discounts to customers, which were not always utilized, leaving the company dealing with cash flow challenges.
The funds from Sallyport Commercial Finance will allow the company to smooth out seasonal fluctuations and prepare for the busy season ahead. Having recently taken ownership of the business from their parents, the client’s long-term goal is to build a sustainable family business that can be passed down to future generations.
“I am pleased to announce Sallyport’s latest client, a supplier to the floral industry,” James Bartel, senior vice president at Sallyport Commercial Finance, said. “The company is very seasonal, and it is great that we can provide the financial support required to allow the firm to flourish despite the challenges surrounding their business model.”