This Client is a family-owned and operated frozen foods manufacturer headquartered in New York. They offer a full line of convenience products, which includes an extensive line of appetizers/ hors d’oeuvres, pre-plated meals, gluten-free certified, vegetarian, bulk entrees, breakfast products, crepes, and blintzes.
Background:
- Formed in the 1970s, the company is a nationally recognized leader in the production of high-quality, kosher endorsed (OU Kosher Certified), frozen foods products.
- The Client manufactures under its own brand as well as private label which are distributed to all major renowned discount warehouses based in the United States.
Company Challenges:
- This company is well established and has a well-deserved reputation however they were struggling to make timely payments to vendors due to working capital constraints imposed by their existing bank facility.
- The Client’s growth significantly outpaced its ability to leverage its balance sheet and cash flow.
- They were unable to meet the growing demands of their major customers using their bank sponsored ABL Facility.
Capstone’s Solution:
- Provided a seven-figure Master Factoring Facility and a Purchase Order Facility.
- Opened ad-hoc Letters of Credit for the purchase of new equipment.
Progress and Future Outlook:
- Since the commencement of the relationship back in 2019, Capstone has purchased $72 million in total sales.
- Cash flows and business operations were stabilized through the uncertainty of the COVID-19 pandemic.
- Cash flow constraints were eased resulting in the Client meeting/surpassing order demand from all major customers.
- The Client has found Capstone to be flexible, practical and knowledgeable about their industry; Capstone took the time to understand their business needs and provided a customized funding solution.
