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Game Board Distributor

Challenge

  • CA based game board distributor was short of working capital, which limited its opportunities for growth. In addition, its overseas supplier relationships were becoming increasingly difficult, because of slow payments

Solution

  • The distributor turned to Franklin Capital for a combination of Accounts Receivable and Purchase Order Financing
  • In addition, Franklin Capital provided a Letter of Credit to the Distributor’s vendor that incorporated product specifications, delivery conditions and quality control requirements, thus helping control risk

Result

  • Franklin Capital’s financing enabled this distributor to thrive and diversify in a business environment in which many toy/game distribution companies are suffering
  • Specifically, Franklin’s Purchase Order Program allowed the distributor, through Letters of Credit issued to its suppliers, to make its payments contingent on the performance of its suppliers, therefore, substantially mitigating a significant risk for the distributor

“We’re a small company and we don’t have the cash laying around to finance all of our purchase orders. Our relationship with Franklin allows me to focus on my business. I wear a lot of hats in my business and now I don’t have to wear the hat of financing my business.”

President, Southern California Fashion Designer and Distributor