Background:
A newly launched Texas-based wholesaler specializing in bulk raw chemicals and animal feed products, including organic soy, corn, sunflower, and grains, entered the market with strong customer relationships and early demand. In its initial phase, the company operated strictly on prepaid and COD terms. While this model supported early transactions, it significantly limited the company’s ability to expand its customer base and pursue larger opportunities.
Financing Solution: Factoring
Initial Amount: $500,000
Location: Texas
Industry: Wholesale Distribution (Chemicals & Animal Feed)
Problem:
To scale its business and compete for larger accounts, the company needed to offer competitive payment terms to its customers. However, this would create significant cash flow strain, particularly for a start-up business with limited operating history. Without the right financing partner, the company risked missing out on growth opportunities and potential long-term clients.
Solution:
Through an established relationship, this opportunity was introduced to Commercial Funding Inc. by a former commercial banker who is now a broker. We quickly acted on the referral, personally visited one of the company’s warehouses to meet with ownership, and looked at the operation firsthand. Commercial Funding’s relationship-driven approach provided confidence and clarity to move the deal forward quickly.
Results:
With CFI’s factoring solution, the business was able to convert its accounts receivable into immediate working capital, allowing it to offer extended terms to customers while strengthening liquidity and supporting rapid growth.
