Our Client

A humidor and cigar wholesale distributor, whose parent company is a prominent cigar importer and distributor, sought to diversify its distribution channels by targeting convenience stores, truck stops, and rest stops along major highways and interstates. They would do this by placing humidors in these locations and filling them with their cigars. To execute their plan, they needed to establish a new subsidiary and secure financing from a lender capable of supporting their vision.

Challenges

The distributor faced several challenges in realizing their expansion goals. The first hurdle was establishing a new subsidiary to facilitate their distribution strategy. To do this, they needed a lender willing to finance this new entity with the flexibility to accommodate the anticipated diverse customer base of both large and small businesses in their distribution network. Additionally, the distributor needed to ensure the lender had confidence in their management team and could expand the credit facility as the business grew.

Porter Capital’s Solution

Introduced to the distributor by a trusted referral partner, Porter Capital recognized the opportunity to provide a tailored financing solution to meet the client’s unique needs. Leveraging their expertise in alternative financing and their capacity to support diverse customer bases, Porter Capital worked closely with the distributor to understand their goals and challenges.
Through this collaborative effort, Porter Capital developed a financing package that addressed the client’s specific requirements:

  • Provided financing to the new subsidiary, enabling them to establish and operate their distribution network effectively.
  • Structured a credit facility that accommodated a diverse customer base, including both large and small businesses.
  • Demonstrated confidence in the client’s management team, fostering a strong partnership built on trust and collaboration.
  • Offered scalability in the credit facility, allowing the distributor to expand their operations as their distribution network grew.

 

Outcome

Porter Capital’s credit facility empowered the distributor to execute its expansion strategy successfully. By providing the necessary capital and support, the Porter team enabled the distributor to establish a new subsidiary, penetrate new markets, and enhance their distribution channels. As a result, the distributor achieved their goal of increasing their channels of distribution, reaching a broader customer base, and driving growth for their parent company.

Conclusion

This collaboration exemplifies the power of flexibility, creativity, and partnership in achieving business objectives. Through attentive listening, creative thinking, and tailored financial solutions, Porter Capital enabled this distributor to overcome its challenges and capitalize on new opportunities in its industry.

Porter Capital Can Help Fund Your Business Growth 

If you are a business owner looking for working capital, invoice factoring, or have found yourself in a situation like our new wireline manufacturing client, please visit our Apply Page.    

If you are a broker looking for solutions to meet the needs of prospects who do not qualify for traditional financing, you can submit a referral for review on our Partner Page. Our team would welcome the opportunity to find the right financial solution to best fit your client’s needs.