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Assembling a cash flow solution for a custom furniture manufacturer

Accounts Receivable Line of Credit
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Building a custom chair

Situation

Formed in 2022, this early-stage company manufactures custom home furniture for a variety of customers across the southeastern United States. Despite a limited operating history, the company quickly began to grow and secured a large number of purchase orders. In order to fund anticipated growth, the owner approached his local bank for a working capital line of credit. With no historical financial performance, the bank was unable to approve the request.

Solution

In order to provide an alternative funding solutions, the banker referred the company to Magnolia Financial. Impressed with the owner’s industry experience and strength of the company’s Accounts Receivable, Magnolia extended a $300,000 working capital line of credit within 24 hours of the initial meeting. Instead of waiting 30, 45 days or more to receive payments from customers, the company can now access its cash the same day they invoice. The company can now take advantage of early pay vendor discounts that were previously unavailable due to limited cash flow. By using the Accounts Receivable Line of Credit provided by Magnolia Financial, the owner can now focus on growing the business rather than worrying about his daily cash flow.

Available when we needed them

Magnolia was really available when we needed them, and the leadership at Magnolia was empathetic to the cold, harsh nature of traditional banking. It gave us a tremendous amount of comfort during a difficult time. Marc Smith and his team really understood where we were, where we were going, and gave us the help we needed to get there.

– Frank Workman, Dealers Supply & Lumber Company
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