We recently started working with a new lumber mill client in rural Ontario. They had just started operations, so there was no chance of a bank line, and how were they to obtain working capital to grow? Through a referral from a CFO contact of ours, we were able to provide them the following growth capital solutions:
- Advice on an appropriate credit limit for their initial customer (customer orders exceeded the evident creditworthiness of the customer)
- Cash advances through invoice purchases, to allow them to pay start-up and other expenses
- An inventory advance to allow them to pay for existing logs on site and obtain further truck loads for milling
- A lease opportunity for equipment they needed.
They’re looking at new equipment to multiply output four-fold, expecting a large PO from a solid new customer, and the future looks bright.
Know a small new business with great opportunities that needs working capital for growth? Reach out to us today so we can help! Preferred minimum facility size: $100,000.
