VP Ashley Orlando discovered the client through her extensive network and contacts in the plant-based food and beverage industry. Two years ago, the client created a Vegan frozen lasagna that quickly gained popularity and flew off the shelves. Like an Italian grandma serving a guest in love with her food, the client is back in the kitchen and using ETC’s patented financial sauce to cook up more Italian staples like vegan ravioli, mozzarella sticks, meatballs, and arancini.
After rolling out to a good start in 2022, the client forecasts robust sales growth for 2023 as they continue to open more doors and gain precious shelf space. But they needed the working capital to get there. Through a referral, the client approached Ashley and ETC with the perennial problem of cash flow crunches caused by a disparity in payment terms between customers and suppliers.
Since the client’s retail customers were paying on net 30-day terms, the client consistently ran into cash crunches with their copacker who provided only net 10-day payment terms. Although the client had several promising talks to open more doors with larger accounts, the logistics proved difficult as each new account required an industry standard of net 30-day terms or greater which only increased the client’s financial burden with each additional order.
Looking to thaw the client’s frozen growth, ETC opened a factoring facility to accelerate the payment of advance receivables. With a bit of good history, the client has the option to add a PO funding facility, allowing them further flexibility to juggle the working capital required to scale rapidly. ETC is thrilled to welcome this new client into our expanding food and beverage portfolio and proud to help entrepreneurs creating sustainable, earth and health friendly products. No animals were harmed in the making of this facility.
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