Commonwealth Capital was recently introduced to a growing maker of architectural products. The Company is a Minneapolis-based subsidiary of a foreign parent company. While the parent company has been in existence for many years the domestic subsidiary was wrapping up its start-up phase. With a rapidly expanding order pipeline, the Company was in needed working capital to help fill orders. The Company sells to big-box retailers, commercial general contractors, as well as a US-based distributor network. The Company decided that invoice factoring was the best way to temporarily increase its working capital.
Upon meeting with the Company, it was apparent that they had a quality product and that the Company was poised for strong growth. They even let us assemble one of their products, which was a blast, and a first for a meeting with a prospect. Commonwealth Capital provided a $250,000 factoring facility to the Company, based upon invoices for products that have been delivered. Commonwealth Capital was also able to fund the Company’s invoices to general contractors, which are typically excluded from invoice factoring transactions. Because Commonwealth Capital is one of the few factoring companies based in Minnesota, the Company received attention from Commonwealth Capital’s owner and a quick, definite response to their request for factoring. Our factoring facility has given the Company the confidence needed to continue to book new orders. We are glad the Company decided to work with Commonwealth Capital to serve their growing business and we look forward to seeing them grow.