Situation:
We manufacture outdoor grills which we then sell to retail stores. We were fortunate to find and set up a Transaction-Based Financing (TBF) line with them which helped us double our business in 2 years. At the end of the 2nd year with , we were left with a huge inventory surplus following our Spring season. At the same time, we were trying to launch a new product line which we had pre-sale orders for from several large customers. We had a big, big problem. We couldn't manufacture the new product to fill the orders because all of our profits were tied up in our finished goods inventory.

Solution:
Phone Call #1:
I called my representative and explained my situation. He listened and then suggested that I call one of our largest retail customers and offer a special close-out inventory sale if they would take all of my surplus inventory. He said they would most likely want special pricing and terms if they agreed.

Phone Call #2: I called our largest retail customer and offered them a special close-out inventory sale if they would take all of our surplus inventory. They agreed to purchase the surplus inventory but wanted special pricing and terms, which I agreed to.

In order to accommodate this unique situation, set up a special profile in my customized program which increased the advance rate from my typical advance of 85% to a 92% advance and fixed the discount rate for 60 days to match the terms of the invoice. I was able to ship the inventory and advance on the invoice the next day. The money I received from this advance was used to purchase the materials needed to manufacture our new product line and ship our pre-sale orders which were worth $300,000 to our bottom line.

Summary:
Twelve hours after making my 2 phone calls, I was able to ship the inventory and advance on the invoice. The money I received from this advance was enough to purchase the materials needed to manufacture our new product and ship our pre-sale orders which were worth $300,000 to our bottom line.