A technology and data services company in the Northeast faced cash flow constraints after receiving a large purchase order (PO) from a longstanding customer. To fulfill the order and manage a traditionally slow Q4 season, they needed immediate funding.
Vision
The company aimed to fulfill the PO on time while maintaining enough working capital to navigate the slower Q4 season while preparing for future growth.
Opportunity
The PO presented a strong revenue opportunity and the chance to strengthen the company's client relationships. Delivering on time would solidify its reputation and pave the way for future business.
Challenge
Liquidity Constraints: Required $600,000 upfront to procure hardware and labor, with payment 90 days post-delivery.
Seasonality: Historically slow Q4 amplified cash flow issues.
Flexibility: Needed funds to meet both immediate project needs and ongoing operational costs.
How Fora Financial Helped
Fora Financial approved and funded $700,000 in just six business days. The financing included:
A custom prepayment discount, reducing the cost of capital to 10-15% if repaid within 3-6 months.
Flexible terms, including acceptance of a Corporate Guaranty instead of a personal guarantee and no upfront UCC filing.
Results
On-Time Fulfillment: Enabled the company to meet the PO deadline.
Stabilized Operations: Provided liquidity for ongoing expenses during Q4.
Cost Savings: Prepayment discount minimized borrowing costs.
Client Trust: Strengthened relationships with key clients.
Conclusion
Fora Financial's fast and flexible funding allowed the company to complete a large project while managing cash flow during a challenging season. With $700,000 in tailored financing, the business maintained stability and strengthened its position for future growth.
Why Fora Financial
Speed: Delivered funding within six business days.
Flexibility: Tailored terms that supported both project and operational needs.
Cost Efficiency: Prepayment discount reduced financing costs.