$1MM Factoring Facility Unlocks Growth for Beverage Manufacturer

THE SITUATION
Previously, the company acquired a 60+ year-old contract manufacturing business and transformed it under three growth-focused owners through modernized processes, upgraded equipment and new product development.

Despite this progress, a challenge emerged when its largest customer, representing 25% of sales, was excluded from the company’s bank line due to an average payment cycle of 98 days. This created ongoing cash flow pressure and limited the company’s ability to fund growth at the desired pace.

THE LEADERSHIP
The ownership group stood out immediately. The team includes a seasoned finance leader and two experienced beverage operators. Their capabilities were reflected in the company’s performance, including 20% year-over-year revenue growth, new SKU expansion and plans for a second facility. It was clear the business was well-managed and positioned to scale.

THE SOLUTION
To address the constraint, Advantage structured a single-debtor $1 million factoring facility supported by credit insurance. With cooperation from the company’s existing bank lender, an intercreditor agreement was established that aligned all parties.

With this additional financing tool in place, the company can now unlock liquidity tied to its largest customer and continue executing its growth strategy.