$100,000 Purchase Order Funding

This small specialty food manufacturing and distribution business began in the coastal region of South Carolina in 2011.  Beginning with a wonderful sauce recipe based on an old family recipe, they were able to gain local and regional distribution contracts, and grew the business to $20,000 per month by the summer of 2016.

In July of 2016, a wonderful and scary thing happened as a result of hard work, lots of sampling and tons of follow-up with distributors and wholesalers.  The business received an order from a national distributor in the amount of $199,000 – a fantastic milestone for the growing business!  But, with current sales averaging only about $20,000 per month, the business did not have the $140,000 needed to pay their “co-packer” to manufacture and ship the order.

The owner immediately visited her local banker with the large Purchase Order in hand, discussing a short-term working capital loan to cover the cost to make and ship the product.  Her banker was excited for her, but disappointed to have to tell her that they would not be able to loan against a P.O., and that the business was a bit too young yet to consider a line of credit that would meet her needs.

Luckily, the banker cared enough to suggest another potential solution.  Telling her about Infusion Capital Group, he explained that we may be a good short-term option enabling her to pay her co-packer and fulfill the large new order.  The owner called Infusion Capital, and after a very productive discussion we were able to confirm that this sounded exactly like the kind of situation where we would be able to provide funding!

2 weeks later, as the requested delivery date drew closer, the owner got back in touch with Infusion Capital to see if we could quickly complete our due diligence, get her approved, and provide the funding needed.  Within a few days Infusion Capital wired $100,000 to the co-packer who was able to immediately release the goods for shipment!

One of the things this client really liked about our service was that she did not have to commit to any long term funding, or any minimum amount of funding.  She took full advantage of our “use us as you need us” flexibility and was able to deliver on the most important order to date for their young and growing business.  Most likely her ability to professionally and promptly deliver on this big order with a major national distributor will lead to rapid growth in the coming 12-18 months, and the business may again find that they need us for occasional spikes in orders.  If so, we will be here to help with rapid and flexible funding!

$145,000 Invoice for Medical Device Start-Up

This Medical Device start-up in the Western US developed ground breaking new imaging technology and had begun to sell and place a few units in a few major hospitals.  The company was beginning to attract major interest from Venture Capital firms interested in the company’s potential for substantial growth.

The owner of the company invested and borrowed a good deal of money to get the technology firm thru the expensive R&D and initial manufacturing stage.   While the units placed in hospitals were producing moderate recurring monthly revenue, it was not enough to meet her immediate need for travel to support sales and investor relations efforts.  The CEO/owner was looking for someone who could provide her with the short term capital necessary to meet her immediate needs.

One of the owner’s consultants referred her to Infusion Capital Group.  In our initial discussions we learned that the company had recently sold a unit to an Army hospital in Virginia for $145,000.  Purchasing this invoice, and advancing the $75,000 needed to meet the owner’s needs seemed like the perfect solution to meet her needs!

The owner worked diligently thru the many steps required by the government that would finally allow us to purchase and advance against this invoice to the US Dept. of Defense.  And, while this funding took longer than usual to put in place due to the rigorous demands of the government, we were able to get the CEO/Owner the funds needed to help her keep her on the road and her company growing.

This funding is a great illustration of how Infusion Capital Group clients utilize our creative and flexible platform to meet their needs.  Short-term, no contract required was exactly what this owner needed to get her business to the next level!

Start-Up Commercial Security System Installer with Very Little Working Capital

In 2013 three experienced guys in the Commercial Security and Electronics industry got together and decided they wanted to start their own business.  With decades of experience behind them, their plan was to leverage the strong relationships they had built with their commercial customers over the years to start and build a company that would provide wonderful service for their customers and a real future for their families.

Because of their excellent reputations and relationships, the new business quickly began to obtain nice size contracts and PO’s with their previous customers.  The jobs could usually be completed and invoiced within a week, but then took 30-45 days to get paid.  During that time the owners had to hire/pay staff, purchase supplies, lease trucks, etc.  They needed additional working capital to fund their growth!

At first their needs for gap funding was small, a few thousand a month.  Banks wouldn’t help – not in business long enough.  Standard factors couldn’t help – too small and not enough customers (too concentrated).  Referred to Infusion Capital by a standard factor, we were quickly able to get comfortable with the risk, the quality and experience of the owners and opportunity for growth.  Very soon Infusion Capital was advancing funds when the owners needed quick capital to meet their needs.

Fast forward to 2016 – the company is doing $1,500,000 in revenues and is now one of the premier commercial security installers in the SE US.  The owners have retained their relationship with Infusion Capital, utilizing our funds as needed to keep their teams on the road and working as they continue to grow their outstanding business.

This scenario highlights how our flexibility and willingness to do small deals enables us to help start-ups who have fast growth opportunities.  Based on the quality and industry experience of the owners, as well as the quality of the customers they were selling to, Infusion Capital felt comfortable partnering with this new young company to help them ignite their growth!