Quick Summary

Facility: $200,000 receivables-based factoring line
Structure: 80% advance rate with recourse factoring
Speed: Approximately two weeks from initial conversation to first funding
Purpose: Stabilize cash flow tied up in distributor receivables
Impact: Supported production planning and ongoing operations during seasonal demand swings

The Challenge

A growing craft spirits producer supplying regional distributors was experiencing seasonal revenue swings tied to production cycles and distributor purchasing patterns. While demand remained strong, payment terms with wholesale buyers created a cash flow gap between production costs and collections.

The company’s operating model required upfront investment in raw materials, bottling, labeling, and compliance before product could be invoiced and shipped. Once invoiced, distributor payment terms extended beyond the company’s immediate working capital capacity.

As a result, capital became concentrated in accounts receivable at the same time production and payroll obligations came due. The business was not facing a demand issue. It was facing a timing issue.

Traditional financing options proved slow and restrictive. The company needed a solution that aligned directly with invoiced sales and could move quickly without layering on long-term debt.

The Porter Solution

Porter Capital structured a $200,000 receivables-based factoring facility designed to unlock liquidity tied directly to the company’s distributor invoices.

The facility provided an 80 percent advance rate under a recourse factoring structure. Recognizing the common industry practice of distributor deductions, marketing budgets, and potential offsets ; Porter calibrated the advance rate accordingly

Once invoices were assigned, Porter advanced funds against eligible receivables, converting outstanding invoices into immediate working capital.

From initial conversation to first funding, the process was completed in approximately two weeks.

Porter reviewed accounts receivable aging, customer concentration, and distributor credit profiles to ensure the structure matched the company’s operating cadence. Once onboarded, the business gained access to a revolving facility that scaled with invoiced sales volume.

Invoices submitted within the established funding window were advanced the next business day, creating a predictable operating rhythm.

The Results

With liquidity restored, the company was able to stabilize production schedules and meet payroll and supplier obligations without interruption.

The factoring facility allowed management to plan production runs with greater confidence, knowing that working capital would be available as invoices were generated.

As distributor sales increased, available funding capacity increased alongside receivables, creating a scalable model that aligned directly with revenue activity.

The company no longer needed to delay production decisions based solely on the timing of collections. Instead, leadership could focus on distribution growth, product expansion, and market development.

Why They Chose Porter

The company selected Porter Capital for its ability to deliver speed and flexibility without imposing unnecessary structural complexity.

Approval and onboarding were completed within weeks, not months. The facility was structured around the company’s actual receivable base rather than forcing the business into a traditional loan model tied to historical profitability metrics.

As management shared:

“Porter Capital gave us access to our own cash faster. That predictability allowed us to focus on growing the business instead of managing collection timing.”

About Porter Capital

When traditional lenders focus on financial ratios and extended underwriting cycles, Porter Capital focuses on receivables.

Porter provides invoice factoring and receivables financing that convert approved invoices into dependable working capital. With quick credit decisions, next-day advances after onboarding, and structures designed around real operating needs, Porter helps growing businesses maintain momentum.

Family-owned and relationship-driven, Porter Capital delivers clarity and certainty when timing matters most.