A rapidly growing health foods business in Southern California was presented with the opportunity to be the main sponsor of a major marathon in their local market. Proud of their nutritional bars, the company was excited about the chance to sponsor the race. The opportunity meant that their brand name would be on all of the race gear, signs would be posted at the event, and 10,000 people in their target market would be in attendance. It met all their criteria except one - the price tag. Being the headline sponsor of a large event did not come without significant expenses.
As the deadline for their major project approached, the team was racing to the finish line, putting in extra hours and effort to meet the client’s expectations. However, unexpected delays in the supply chain were also racing to the finish line, threatening to derail their progress and create further challenges. Despite the obstacles, they remained determined and focused on racing to the finish line with success in sight.
Not wanting to miss the sponsorship opportunity, the company turned to invoice factoring to get funds faster and secure their spot. The factoring company examined their business and customer profile before agreeing to the factoring agreement. Per the agreement, the manufacturing company would receive 80% of the funds within 24 hours of entering the arrangement.
The company ensured that they were able to fully sponsor the marathon, even as other unexpected expenses occurred. Despite facing increased advertising expenses, some of the company’s production machines broke down, requiring major, expensive repairs. However, with unrestricted funds from factoring, the company could divert some cash for repairs and adhere to production schedules.
As a result of using the rest of the funds received, the company signed up as the major sponsor of the marathon. Consequently, the event turned out to be a roaring success, leading to sales skyrocketing. Moreover, fortunately, one of the runners who tried the company’s product worked at Costco, giving them an in to get their products on Costco shelves. Within two years of the initial factoring agreement, the company’s sales had tripled.
Casey has 12 years of technical writing experience. She is also a CPA and bookkeeper. Casey graduated from the University of St. Thomas (Minnesota) with a B.A. in mathematics and currently resides in San Diego, CA.
