Accounts Receivable Line of Credit
Formed in 2022, this early stage company manufacturers 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.
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.
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Kerry Coker, KAMADO JOE
"The Magnolia guys have a real ‘can do’ attitude. Marc Smith and his team are super responsive and upbeat. They can fund within a matter of days. They are always looking for positive opportunities for their clients. It's a breath of fresh air to work with someone like that."
Frank Workman, Dealers Supply & Lumber Company
""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.""
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