Client | Industrial Battery Manufacturer
The client is a Dallas, TX-based manufacturing company with a 75-year legacy of producing high-quality battery chargers, jump starters, and power inverters for the automotive and industrial markets. Known for its reliability and innovation, the company has become a trusted name in power solutions. The manufacturer serves professional mechanics, automotive enthusiasts, and industrial users. The client was ready to move forward with their expansion plans and needed a partner to assist with the financing for manufacturing growth.
Read their story and learn how Porter Capital’s partnership with a private investment firm gave this manufacturer access to a $20M credit facility.
Challenges | Market Expansion Pressures
The manufacturing company faced several critical financial and operational challenges. The rapid expansion created a pressing need for optimized cash flow to sustain daily operations. The company was also focused on support for long-term growth initiatives. However, unpredictable cash inflows hindered accurate financial forecasting. This made strategic decision-making more difficult. Additionally, the company faced pressure to expand in a dynamic market, requiring greater financial flexibility. They wanted to pursue new opportunities and scale efficiently but were lacking needed capital. Compounding these issues, existing loan agreements and bank covenants complicated the process. The company needed to secure new funding without risking covenant breaches.
Solution | $20M Credit Facility to Fuel Manufacturing Growth
Porter Capital provided a tailored financial solution to address the company’s needs, implementing a $20 million factoring facility to deliver a predictable cash flow source and ensure liquidity for ongoing operations and expansion. By carefully reviewing existing loan agreements, they structured a covenant-friendly funding solution that complemented the company’s current lending arrangements. Additionally, they designed a seamless accounts receivable carve-out, allowing smooth access to factored receivables while working alongside the company’s lender. Through a collaborative approach, Porter Capital coordinated with the client’s financial partners to streamline the funding process without disrupting ongoing operations.
Why Investment Firms Partner with Porter Capital for Manufacturing Client Growth
Many private investment firms partner with invoice factoring companies to broaden the services offered to their clients. These are the 3 Ways these firms use invoice factoring:
- Raising Capital: Invoice factoring provides immediate working capital by converting unpaid invoices into cash. This allows businesses to fund operations without relying on loans or equity sales.
- Mergers & Acquisitions: A factoring company provides short-term funding to stabilize operations before, during, or after an acquisition.
- Debt Restructuring: Instead of taking on more debt, companies can use invoice factoring to improve cash flow. The cash can be used to pay off high-interest loans and help businesses meet financial obligations without additional liabilities.
