When Steve developed a unique wine-based marinade, he had no idea it would land him a $700,000 order from a major national grocery chain. Asa startup with no credit history, this opportunity was both a breakthrough and a challenge. The order could jumpstart Steve’s business if he could fill it, but traditional lending routes had closed their doors.
That’s when his banker made a game-changing referral to Barrington Commercial Capital, which offers a variety of creative funding solutions, including receivables commercial loans.
The grocer agreed to place Steve’s marinade on shelves across multiple stores and sent over a $700,000 purchase order (PO). But Steve’s manufacturer required half the payment up front and the remainder before delivery. Unfortunately, Steve’s business was brand-new; he didn’t have the cash, time or credit history to access traditional financing. His bank also declined his loan request.
Fortunately for Steve, his banker referred him to Barrington Commercial Capital to solve his cash flow challenge. As specialists in alternative funding, the team at Barrington Commercial Capital knew exactly how to support Steve’s new venture.
Our team understood the value behind Steve’s opportunity. APO from a national retailer signaled low risk and high potential upside. With that in mind, we developed a two-part financing solution, which included the following:
● A $1,000,000 PO line of credit to pay the manufacturer
● A $1,500,000 accounts receivable (AR) line of credit
Accounts receivable financing was used to payoff the PO line and then provide Steve with the working capital he needed to continue growing the business. Steve was able to use the AR line of credit for any future receivables.
Steve’s case is a textbook example of how early-stage businesses with solid purchase orders can overcome capital limitations. AR and PO financing are strategic levers for scaling.
At Barrington Commercial Capital, we look forward to these opportunities, as they allow us to support the growth of emerging businesses that have demonstrated a demand for their products or services.
If you need capital to fulfill outstanding orders or are interested in creative financing solutions, Barrington Commercial Capital maybe able to help. Get in touch with us to learn how we can tailor a financing solution that works for your timeline and goals today!
