Their business had been expanding rapidly and they had recently landed several contracts with local health food stores to carry their products.  The products had been delivered, but the invoices were still outstanding.  As part of their negotiation to be carried in the health food stores, the company had agreed to 90 payment terms with the stores.  Though they had the cash available to fund their operations during those 90 days, they did not have additional funds sitting around for expensive advertising campaigns.

Not wanting to miss the sponsorship opportunity, the company turned to invoice factoring to get funds faster and secure their spot.  The factoring company looked at the profile of their business and their customers before agreeing to the factoring agreement.  In their agreement, the manufacturing company received 80% of the funds within 24 hours of entering the agreement.

The company ensured that they were able to fully sponsor the marathon even as other unexpected expenses occurred.  Along with the increased advertising expenses, a few of the company’s production machines broke down and needed major, expensive repairs.  Because the funds received from factoring did not have any restrictions on their use, the company was able to divert some of the cash to pay for the repairs and adhere to their production schedules.


The company used the rest of the funds received to sign up as the major sponsor of the marathon.  The event was a roaring success and sales skyrocketed.  Fortunately for the company, one of the runners who tried the company’s product worked at Costco and gave them an in to get their products on Costco shelves.  Within two years of the initial factoring agreement, the company’s sales had tripled.

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