Hi DF,

Most of you know we are Seacoast Business Funding a division of Seacoast National Bank. We offer flexible working capital solutions in the forms of factoring and asset based lines of credit. We are unique in the market as we are bank owned, but can still work with challenged companies or companies in transition. We have the ability to provide flexible receivables facilities and include inventory and/or equipment as an accommodation.

Over the years we have financed companies nationally in a variety of industries (excluding contraction and healthcare services). We love consumer product companies. Many of these companies will be facing their yearly challenge in January. Seasonal consumer product companies like sporting goods and home improvement goods typically have their busiest selling season early spring through summer. Many companies in the US rely on contract manufacturers or suppliers based in China. The lead time for products is typically 1 to 2 weeks for manufacturing and many ship by water which usually takes 30 days. Many manufacturers in China do NOT offer terms to US companies buying products. January puts a monkey wrench in planning for a lot of these US companies buying products in China as January is Chinese New Year and most plants shut down for the month....yes...the month. Cash terms, trying to build inventory or fill orders for your busiest selling season with your plant shut down for a month puts a strain on working capital for most of these companies. Many are trying to build some inventory right now ahead of January..... That being said, they need working capital.
Math: Paying cash for a two week lead time and 30 days on the water, entering the busy season, terms with customers N30-N60 = cash crunch and a business owner looking for ideas.

Our ideal client:
-Based in the US selling to large commercial domestic customers. We will consider some international customers.
-Revenues from $1.5Mil to well over $200Mil.
-Facility need from $250K to well over $20Mil.

Happy hunting and I hope this idea sparks opportunities!


Best,

Kevin