Solution:
|
Ashford Finance funded 100% of the cost of the
goods against the Purchase Orders. This enabled
the company to do more business and take on
larger orders. In addition, more funds were
advanced against the accounts receivable
(Factoring). Ashford financed this company for
their full cycle, from the purchase of the goods
to the financing of the receivables. By
financing 100% of the costs for the full cycle,
Ashford provided the apparel company with a
platform for rapid growth and stability. The
additional sales gained with Ashford’s funding
would have otherwise been lost. |
 |
|
Example: |
P.O. value = $200,000
Cost of the goods = $100,000 |
|
ASHFORD
FINANCE |
• Provided this company 100% of the $100,000 and
more (freight, customs, etc)
• Advanced additional $50,000 on the invoice
that was utilized to cover day-to-day operations
• Allowed the company to generate $100,000
additional sales giving the company $430,000
incremental income that would have been lost
• Provided transactional equity financing that
allowed the company to grow without any capital
constraints |
|
|
Company: |
US flavored bottled water company that bottles
through third party bottling company and sells
domestically to large retailers. |
 |
|
Industry:
|
Specialized Bottled Water |
|
Problem: |
The company is getting large orders for its
bottled water but does not have the funding to
buy the specially designed bottles from one
supplier, the flavor from another supplier, and
bottle them in a third bottling plant. |
|
Solution:
|
Ashford Finance issued a transferable
irrevocably US domestic Letter of Credit in
favor of the large bottler who then backed by
the Ashford Letter of Credit ordered the
bottles, the flavor and then bottled the
products and immediately got paid by Ashford as
soon as the goods were shipped from the bottling
plant. |
|
ASHFORD
FINANCE |
• Provided the company 100% funding for the
production all the bottled water it had sold.
• Allowed the company to triple its sales in a
few months.
• Provided transactional equity financing to
grow without capital constraint and without any
loss of equity. |
|
|
Company: |
The company buys specialty chemicals from China
and sells them to European buyers. |
|
Industry:
|
Chemicals |
|
Problem: |
Has a factor who does not want to advance
against foreign receivables and when they do the
advance rate is very low. As a result the
company has been missing out tremendous growth
opportunity. |
|
Solution:
|
Ashford not only advanced funds against foreign
receivables but also financed the purchase of
the chemicals before the receivables were
created. The company very quickly doubled their
sales and opened up new foreign markets. |
|
ASHFORD
FINANCE |
• Provided 100 % funding to purchase the raw
material and also carried the foreign
receivables.
• Allowed the company to increase sales and to
open up new foreign markets which the old
finance company could not do.
• Provided transactional equity to grow without
any equity loss. |
|
|
Company: |
The company has a patented painting technique
which is used on different home utensils. |
|
Industry:
|
Home and Kitchen utensils. |
|
Problem: |
Though the company has grown a lot, they had
spent lot of money on product development and
expensive personnel. The company’s bank,
impressed with company’s potential provided a
working capital line of credit which was mostly
used up. The problem was that line could not be
paid down as it was funding permanent needs
rather than short term working capital needs.
When the vice president of the bank handling the
account left the bank, the new account executive
did not want to lend any more and wanted to be
paid down. The dilemma for the bank was that the
company, in addition to the amount already
borrowed, needed significant transactional
funding to satisfy the orders it was receiving.
If the bank did not provide the new funds the
company would go under. |
|
Solution:
|
The bank contacted Ashford Finance who provided
a line of credit to purchase new goods. This
allowed the company to grow out of the liquidity
trap. With new transactional equity from
Ashford, the sales and positive cash flow grew
very quickly. Part of the excess cash generated
was used to amortize the bank loan. Once the
bank saw its loan being paid down, they became
less nervous. The company using Ashford
Finance’s unique funding very soon out grew its
sales forecast and became a very desirable
borrower of the bank. |
