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.