$2,500,000 A/R & inventory facility for pie & cake manufacturer

$2,500,000 A/R & Inventory Working Capital Facility

Pie & Cake Manufacturer Refinances to Fulfill a Large Seasonal Order

CLIENT

This commercial bakery was in urgent need of financing. Their long-term bank lender became fatigued with their highly-seasonal sales cycle and converted their revolver into a term note with rapid amortization. This was a major issue, because the Thanksgiving season was rapidly approaching, and the manufacturer needed to fulfill a $10 million order for a large, national retail chain.

SITUATION

This commercial bakery was in urgent need of financing. Their long-term bank lender became fatigued with their highly-seasonal sales cycle and converted their revolver into a term note with rapid amortization. This was a major issue, because the Thanksgiving season was rapidly approaching, and the manufacturer needed to fulfill a $10 million order for a large, national retail chain. FINANCIAL SOLUTION

FINANCIAL SOLUTION

Accord provided an accounts receivable and revolving inventory facility to pay off the bank and provide the working capital necessary to buy ingredients for the manufacturer’s seasonal influx of orders. Funding was needed before the steady flow of seasonal A/R, which meant the initial collateral coverage would be heavily reliant upon inventory. The private equity group that owns this company previously worked with Accord to fund some of their other holdings, and knew Accord could provide a fast, creative financing solution.

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