Case Studies

Industry: Toys and Electronics importer

Situation: Toys and consumer electronics importer and distributor approached Coral Capital to finance Purchase Orders and Accounts Receivables to be able to deliver on new high volume PO's obtained from large regional retailer. Company had heavy customer concentration, was selling on long terms (more than 90 days) and high seasonality in their business.

The Deal: Coral Capital replaced existing AR lender, added PO financing with letters of credit, and negotiated an inter-creditor agreements with two separate banks to maintain term loan and inventory financing for the client, thereby adding substantially to the working capital availability.

The Result: The company has been able to expand its product line to be able to source from overseas suppliers that require Letters of Credit and is now competing for larger orders with nationwide retailers.