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Wrist Watch Company Case Study

19:57 08 December in Case Studies
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Case Study Wrist Watch Company: Trade Financing & Factoring

COMPANY CHALLENGES

In addition to struggling with collections, bad debt and a lack of working capital, this company also operated below breakeven. Their debt exceeded the value of A/R and they were placed on cash-in-advance terms with vendors. The company was in work out with their primary bank on a $6 million credit facility.

BACKGROUND

Local family owned and operated wrist watch company headquartered in Upstate New York with its roots dating back over 100 years • Majority of accounts receivable were long standing relationships going back 40 years 3 • Provided Trade Financing and a Factoring Facility • Conducted a credit review of all customers • Reestablished credit terms with the company’s vendors • Had company sell off old unusable inventory & non-sales generating assets and release excess employees to reduce monthly operating overhead

PROGRESS & FUTURE OUTLOOK

Sales doubled first 12 months – expected to increase by another 30% for 2014 • Customer base shifted from small boutique retail stores to major big box retailers and home shopping shows • Bank line significantly reduced

CAPSTONE’S SOLUTION LEARN MORE TODAY

Email: [email protected] or Call: 212-755-3636 or 347-821-3400

 

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