Case Study:
Non-Debt Solution to Boost Growth in the Food and Beverage Industry
A major beverage manufacturer and distributor specializing in coffee had immense growth potential but lacked the working capital to facilitate taking on larger orders. By leveraging their accounts receivable, the company was able to expedite their growth and earn the business of major brands with household name recognition.
How Raistone helped a major beverage manufacturer and distributor increase access to working capital
A fast-growing coffee manufacturer and distributor needed access to working capital to increase production and fill more orders.
In the food and beverage industry, upfront payment is required for a manufacturer to create and distribute a product. This can present a problem when a company must pay upfront, but will not receive payment from their buyers for weeks or months.
The company required a flexible solution to meet the demands of their growing clientele and increase their market share.
Raistone assisted by easing the company’s cash flow constraints with an initial $500,000 facility, which was raised to $1 million in less than a year. This speaks to the high growth potential that the company was able to act on once they had access to the cash that had been locked up in their receivables.
The flexibility provided by Raistone was a huge benefit for the beverage company. With some seasonality in their industry, it was essential for the company to be able to accelerate their cash flow as needed.
Key benefits of working with Raistone:
Increased working capital: This beverage manufacturer and distributor now has a $1 million Accounts Receivable Finance facility. The facility can scale up in size as the company continues to grow.
Business growth: Since partnering with Raistone, this up-and-coming beverage manufacturer has accelerated over $2.5 million in invoices to facilitate their continued growth.
Non-debt working capital: Our solution is not debt to this beverage manufacturer. It simply accelerates payment on an asset, which coexists and complements other early pay or lending facilities.
A world-leading fintech: Raistone is owned by a full-service broker dealer, a $30 billion family office, a $900 billion wealth manager, and an international bank.
Another benefit of Accounts Receivable Finance (ARF) with Raistone is that many clients benefit from lower costs compared to traditional factoring or bank loans. This is because the discount fee for ARF is based on the debtor’s credit, which for many small- and medium-sized businesses (SMBs) selling to larger companies, can be better than their own. This provides SMBs with more favorable terms than they would receive elsewhere.
Since partnering with Raistone in the past year, this in-demand coffee supplier has been able to accelerate over $2.5 million in outstanding invoices, increasing their access to liquidity and ability to capture valuable growth opportunities in their market.
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