Crossroads Financial announced that it has provided a $500,000 purchase order financing facility for the benefit of a distributor of children’s toys. The company, faced with large orders ahead of the Star Wars movie premier, needed to pay their supplier, located in Asia, to produce and ship the product on time. Instead of going out to raise equity, the company engaged Crossroads to provide transactional financing, providing Letters of Credit to the Asian manufacturer and making sure the products were on the shelves in time for the holiday season.
“By facilitating the transaction, Crossroads was able to help our client put on orders that would not have been possible without our help” commented Darren Palestine, Director of Sales at Crossroads. “We believe our client can take advantage of this publicity and film release to create new opportunities in the future.”
Crossroads is partnering with a lender who is providing a receivable factoring facility, creating additional working capital and funding Crossroads once the goods are delivered to the customer. Crossroads provides Inventory revolving credit facilities and Purchase order financing throughout the United States and Canada.