Express recently cooked up a $2mm A/R and a $500k P.O Funding Facility for a chili spice company. The company’s sales caught fire with significant increased orders from its large retailers and they couldn’t keep up with the demand. Express’s well-seasoned team spiced things up with working capital to pay their copacker and purchase raw materials, ingredients and packaging.
Like many food and beverage companies, the client was originally looking for VC or PE firms to provide capital for order fulfillment and basic working capital requirements. The client did a hot take when they realized that they could use factoring and PO funding facilities to finance their growth AND increase their enterprise value without giving up equity in the meantime. All in all, it was another tasty adventure.
What are everyone’s thoughts on when companies should seek equity investors?