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• 29 Oct

  A Case Study About A US Factoring Company Found For A USA Business

  This is a case study about how we arranged recourse factoring for two US businesses in the United States Of America that wanted a factoring company in the USA. 

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  Case Study - Supporting A US-Based Business With Invoice Finance To Fund A Major Retailer Contract

  

  Recently, we assisted a newly established US-based company that needed working capital to fulfil a significant contract with a major US retailer. The unique aspect of this case was that, although the business was set up in the US, the owners were UK citizens living primarily in the UK.

  This cross-border dynamic made the situation more complex but also presented an opportunity for us to provide flexible and tailored financing solutions.

  The Challenge

  The company was seeking an invoice finance facility. They had secured a multi-million-dollar contract to supply their own brand of hair dye products to a major US retail chain. Although the business was set up in the US specifically to trade with this retailer, the initial discussions involved their UK subsidiary. Once it became clear that we could assist with their needs in the US, the focus shifted to helping them fund their expansion into this new market.

  Our Solution

  We found them with a domestic recourse factoring facility provided by a US factoring company. This type of invoice finance solution allowed them to release capital tied up in invoices, helping them meet their contract's demands while maintaining smooth cash flow. With a total funding requirement of several hundred thousand dollars (across the two clients), this financing was crucial for fulfilling orders and growing their business operations.

  Expanding Opportunities

  While the primary focus was on their US operations, there may also be an opportunity to source additional financing options for their UK subsidiary and potential expansion expansion into Europe. The ability to assist both sides of the Atlantic highlights the flexibility and adaptability of our invoice finance search service.

  This case demonstrates how we can support US-based companies, even when the ownership or management resides outside the country. Whether expanding into new markets or needing working capital to fulfil major contracts. We can source tailored invoice finance solutions that can be adapted to meet diverse business needs.

  By Glenn Blackman