This Midwest manufacturing company faced financial hurdles after its growth slowed in 2023, following a strong 2022. Liquidity and profitability issues, combined with mounting accounts payable, forced the business to seek immediate working capital. They turned to Samlend Financial for a customized funding solution to stabilize operations and support long-term financial health.
Vision
The company aimed to maintain its growth while completing key projects and reducing financial strain. With 60 years in business and solid client relationships, they sought to resolve their immediate cash flow issues and prepare for renewed growth.
Challenge
After a successful 2022, rising costs and milestone billing models strained cash flow. Accounts payable had exceeded receivables, and a significant portion was overdue, leaving the company in need of immediate financial intervention to stay afloat.
How Samlend Financial Helped
Samlend Financial recognized the company's history and its leadership's expertise. After due diligence, Samlend approved $750,000 in funding, which was enough to complete key projects and stabilize accounts payable. Additionally, Samlend offered an add-on of $450,000 in month 3, providing the company with flexibility to address any future financial challenges.
Results
Stabilized Operations: The $750,000 allowed the company to complete critical projects and reduce overdue payables, stabilizing its financial position.
Improved Cash Flow: Effective management of accounts payable improved cash flow and set the company up for future growth.
Proactive Financial Management: The option for an additional $450,000 in month 3 provided flexibility for the company to take a more proactive approach to managing its finances.
Conclusion
Samlend Financial's tailored funding allowed the Midwest manufacturer to overcome liquidity issues, stabilize operations, and position itself for future growth. The flexible financing approach and understanding of the business's long history enabled the company to bridge short-term obstacles and prepare for long-term success.
Why Samlend Financial
The company chose Samlend Financial for several key reasons:
Understanding of Business Character: Samlend recognized the company's 60 years of business experience and strong relationships, tailoring the funding solution to fit their needs.
Tailored Funding Solutions: Samlend adjusted the funding to ensure a manageable debt service ratio while still providing enough capital to solve immediate problems.
Flexibility and Support: The option for additional funding in month 3 gave the company the support it needed to continue managing its financial health.
