A regional banker from a long-established Southeastern bank recently began working with our regional sales manager. The banker became more familiar with CFI’s capabilities after attending an on-site presentation over lunch and then began exploring opportunities to partner on challenging client situations.
Financing Solution: Factoring
Initial Amount: $600,000
Location: Southeast
Industry: Retail Display Manufacturing
The banker referred a long-standing client, an exhibit and retail display manufacturer to CFI. The company had a 30-year history but was experiencing operational and financial challenges. The company produces custom product displays for retail environments, ranging from sunglasses to tools, and has built a strong reputation and loyal customer base.
A recent management transition created significant disruption for the client, and the original owner ultimately had to return to daily operations to stabilize the business.
During the disruption, financial performance suffered. The company fell behind with a major overseas supplier, who then refused to release additional product until payment was made. With cash flow declining and operating capital depleted, the bank could no longer extend additional credit. Without immediate financing, the business faced the risk of stalled production, lost sales, and loss of customer confidence.
CFI provided a $600,000 factoring line tailored to the company’s highly specialized billing structure within the retail display industry. Despite the complexity, CFI swiftly completed underwriting, structure development, and funding.
CFI’s factoring solution gave the business immediate access to working capital, allowing it to:
The financing enabled the company to regain momentum and move forward from a challenging period. By partnering with CFI, the bank was able to provide their client with a viable path toward recovery and maintain a positive relationship with a long-term customer.
CFI’s involvement created a win-win: the client gained a lifeline, and the bank maintained its relationship while stabilizing a high-risk situation without incurring further exposure.