Asset-Based Lending and Factoring + CPG’s = A Perfect Match

Attention all Consumer Packaged Goods (CPG) businesses: we have found the perfect match for you. Are you one of the many CPG businesses who are experiencing cash flow issues due to rapid growth? If so, then asset-based lending and factoring of your receivables is arguably one of the best financial options for your company. Not ready for a relationship? Let us be your matchmaker and break it down:

CPG businesses have numerous amounts of upfront costs. This includes:

  • Materials
  • Packaging
  • Labor
  • Overhead
  • Shipping & delivery

Now, because companies that sell consumer products to retailers usually do so on credit terms, they may wait up to 90 days after delivering the product before they can collect on the sale. With all of these overhead costs weighing them down, it can take a very long time to see a return on investment. Along with rapid growth, which requires rapid production, this can lead to constant cash flow issues. What’s worse is that this lack of capital typically causes them to cut down on other costs that are vital for growing their business, including:

  • Inability to hire more employees
  • Skimping on marketing and promotion
  • Inability to install or update necessary software or hardware

So, if you find yourself crossing your fingers for a boom in business but have cash flow issues looming in your future, it might be time to consider other options. We are here to tell you that you don’t have to choose between your company thriving and being profitable or giving up ownership to investors.

The benefits of asset-based lending and factoring for CPG companies:

  • Unleashed working capital for growth
  • Complete ownership and more control of your company – we can show you how to achieve this. When you own more, you control more.
  • Utilize our experience in managing retail contracts – we will help you mitigate concentration risks

To learn more about how assed-based lending and factoring can help in the growth of your business, visit our services page or give us a call today. We can’t wait to set you up for unleashed potential!

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