Children's Watch Distributor

This company imports and sells children's watches to a variety of retailers across the country.  Although they managed to show a small profit the previous two years, the company had not yet built up much equity.  Sales began to grow exponentially in early 2010 and the company needed help with cash flow to finance the increase in business.  With little equity and not hard assets to pledge, they were unable to secure a traditional line of credit with their local bank.

The company's Business Banker referred them to Magnolia Financial.  Based on the company's strong customer base, Magnolia extended the company a $200,000 Accounts Receivable Line of Credit.  The company is using the additional working capital to fulfill new Purchase Orders that otherwise would have been turned away due to a lack of cash.  Magnolia will look to transition the company back to their local bank once they are approved for a line of credit.