Purchase Order Financing and Working Capital – The Life Blood Of Business

Purchase Order Financing and Working Capital – The Life Blood Of Business

Purchase Order Financing
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Purchase Order Financing and Working Capital Are Critical For Growth!

Working capital is often described as the “life blood of business.” No matter the industry cash flow is critical to your company’s survival. Often times there is little cash flow left after meeting your fixed expenses, making your variable expenses difficult to meet. What are variable expenses? These are the expenses associated with sales efforts most typically. The most pressing of the variable expenses is “cost of goods sold” That requires purchase order financing. These are payments needed to pay suppliers to fulfill orders. It is impossible to grow if you do not have the discretionary income to meet growth opportunities. Outside financing is required in many cases. However, not all capital providers are the same and some can leave business owners feeling compelled to borrow at high interest rates or have restrictive convenants attached to the borrowed funds. There is a better way to find the perfect working capital solution for your business and we have the answers!

Is your business on the brink of breaking through to the next level? Is available cash holding you back from making additional sales and kicking more profit to the bottom line? We can help!

About Huntington Coast Capital. 

Huntington Coast Capital secures funding for companies in a broad base of industries. Our clients come to us to find a more flexible lending partner to meet their growth needs. Many are declined by the bank and are in need of a more creative and entrepreneurial funding solution.

We consult on a wide range of funding options for business owners throughout the United States in the following areas:

  • Supply chain financing 
  • Equipment loans and lease programs learn more about our equipment loan platform offered through our subsidiary)
  • Lines of credit for working capital needs
  • Term loans for marketing, hiring staff and general expansion needs
  • Factoring services for accounts receivable financing that also provides for back office credit and collection functions
  • Purchase order financing
  • Asset based loans
  • Business acquisition financing
  • Inventory financing
  • Private commercial real estate bridge loans
  • SBA loans for business and real estate needs

Whether you are a startup or established, in need of $100,000 or $10,000,000 we have the capital partners to meet your needs. Contact us to see how we can assist in taking your business to the next level. To your success!

Patrick Zazueta
Huntington Coast Capital, Inc.
Direct: 714-719-8966
patrick@huntingtoncoastcapital.com
www.huntingtoncoastcapital.comBRE License #: 02090967

Purchase Order Financing In California

Purchase Order Financing In California

Purchase Order Financing

Facilitating Business Growth Through Purchase Order and Supply Chain Financing

 

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The barrier to growth for most all businesses, especially startup ventures, is cash flow. Banks will tell you that you need two years of profitability (as shown on your company tax returns) before they will consider providing a business loan. If you do manage to qualify for a bank loan, it will almost always be an SBA term loan (one lump sum loan amount usually secured by real estate). These loans do not address the ongoing working capital requirements business owners need to fund purchase orders and other monthly cash flow needs.

This lack of access to capital is the reason the majority of businesses fail within the first three years.

The capital partners we represent have an entrepreneurial approach to lending that opens the door for many to grow their business without the covenants and restrictions of traditional financing! Here are a few examples of recently funded deals:

  • $100,000 Supply Chain Funding Line for a CBD Industry client – a distributor with enormous growth potential needed the capital to fund purchase orders. The initial line provided is $100,000 and will grow as the company’s sales grow. Estimated monthly volume with the financing in place is between $600,000 to $800,000 in monthly gross revenue.
  • $2,500,000 Supply Chain Line for a Home Furnishings Importer/Distributor – an already established company needed additional capital to increase sales. The use of this supply chain line of credit will allow them to grow from $50,000,000 to $75,000,000 in annual gross revenue!
  • $4,000,000 Supply Chain and Factoring Line for an Importer of PPE products – a newly formed entity in the personal protective equipment space needed capital to purchase goods from overseas suppliers. The partners in the business had solid experience and strong relationships on both the supplier and buyer side. The line of credit will allow them to scale their business and meet buyer demand.

About Huntington Coast Capital. 

Huntington Coast Capital secures funding for companies in a broad base of industries. Our clients come to us to find a more flexible lending partner to meet their growth needs. Many are declined by the bank and are in need of a more creative and entrepreneurial funding solution.

We consult on a wide range of funding options for business owners throughout the United States in the following areas:

  • Supply chain financing 
  • Equipment loans and lease programs (learn more about our equipment loan platform offered through our subsidiary)
  • Lines of credit for working capital needs
  • Term loans for marketing, hiring staff and general expansion needs
  • Factoring services for accounts receivable financing that also provides for back office credit and collection functions
  • Purchase order financing
  • Asset based loans
  • Business acquisition financing
  • Inventory financing
  • Private commercial real estate bridge loans
  • SBA loans for business and real estate needs

Whether you are a startup or established, in need of $100,000 or $10,000,000 we have the capital partners to meet your needs. Contact us to see how we can assist in taking your business to the next level. To your success!

Patrick Zazueta
Huntington Coast Capital, Inc.
Direct: 714-719-8966
patrick@huntingtoncoastcapital.com
www.huntingtoncoastcapital.comBRE License #: 02090967

The Process: Purchase Order Financing for Personal Protective Equipment

The Process: Purchase Order Financing for Personal Protective Equipment

Purchase Order Financing for PPE Products

Could you benefit from purchase order financing for personal protective equipment? Do you have purchase orders from credit worthy customers for PPE Products? Is a lack of capital holding you back from expanding your PPE business?  Do you have inventory in transit or a factory allocation? Huntington Coast Capital can help. 

The global pandemic has driven the need for PPE Products of all kinds including but not limited to:

  • nitrile gloves
  • face masks
  • face shields
  • hand sanitizer
  • gowns
  • COVID testing products
  • and more…

Huntington Coast Capital secures funding for manufacturers and distributors of personal protective equipment products. Our capital partners provide inspection services to verify all supplier allocations through onsite inspections of factories and allocation holders. In addition to inspections, all documentation in a proposed transaction is analyzed for authenticity. These added services provide more than just a pocket book for purchase order financing. Complete credit management and collection of customer payments is also managed. This allows the client the freedom to facilitate orders with the confidence of knowing they are in partnership with a world class credit management, quality control and financing partner.

Purchase Order Financing for Personal Protective Equipment

The Process 

Once the purchase order financing for PPE products is in place the lender follows these steps:

  • lender inspects all documentation involved in a transaction for authenticity (i.e. PO’s from end buyers, SGS reports, factory details, etc.)
  • once approved, the lender will pay the deposit to begin production directly to the factory
  • the lender pays the balance upon completion and inspection of the finished products
  • products are delivered by air or boat
  • products clear customs
  • the buyer is invoiced
  • the buyer inspects and accepts the goods and manages their logistics to the desired location (unless drop shipped)
  • the buyer either pays onsite or is granted terms for future payment (terms granted to credit worthy customers only)
  • the buyer makes their payment to the lenders lock box
  • the payment covers the amount advanced to the factory or allocation holder, the fund’s principle and all finance charges and fees
  • the cycle repeats

Items needed for preliminary underwriting of a purchase order financing request: 

  • complete contact information for the buyer(s) if not listed on the purchase order
  • complete contact information for the factory(ies) and allocation holder(s)
  • business entity documents for the client’s entity (i.e. Articles of Incorporation, Organization, etc.)
  • resumes/bios on the owners in the entity
  • Huntington Coast application
  • account receivable and payable aging reports (if applicable)

These items will give the fund enough to begin with their preliminary review. If the initial review is satisfactory, further conversations are had to go over the details in more depth.

The Huntington Coast Capital Advantage:

Unlike other direct lenders in the space, we are unbiased in our solutions. Direct lenders involved in Purchase Order Financing for Personal Protective Equipment have one product to present and sell – their own. We are not beholden to any particular lender. This unique advantage has earned us a reputation for unbiased consultation and proven results. Put the power of our industry knowledge to work for you today!

About Huntington Coast Capital: 

Established in 2009, Huntington Coast Capital has a seasoned tenure in the purchase order financing space. We have been assisting clients in traditional industries for over 10 years. When the COVID outbreak began back in early 2020 our focus shifted to purchase order financing for PPE products as the overwhelming majority of inquiries surrounded the space. In the past 12 months we have facilitated numerous transactions by bridging our PPE clients with the appropriate funding partner for their business.

Purchase Order Financing for CBD Products

Purchase Order Financing for CBD Products

Purchase Order Financing for CBD Products

Huntington Coast Capital acted as the placement agent for a purchase order financing request for a client in the CBD industry. The purchase order financing facility will greatly assist the company in expanding its market. The new supply chain financing will allow the company to expand their sales from $20,000 per month to more than $500,000 per month!

The CBD market has been on the rise in recent years. According to Global News Wire – The global CBD oil and CBD consumer health market size is expected to reach USD 123.2 billion by 2027, expanding at a CAGR of 25.6% over the forecast period.

Growing buyer awareness regarding various health benefits offered by cannabidiol (CBD) and increasing legalization of cannabidiol oil and infused products is contributing towards the adoption of cannabidiol as a consumer health product, thereby positively impacting the market growth. Furthermore, changing buyer perception and attitude towards hemp-derived cannabidiol-based products is further bolstering revenue growth over the forecast period (full article).

Huntington Coast Capital’s partners in the space facilitate the growth of many CBD wholesalers and distributors. They do this by providing the much needed supply chain financing and factoring services necessary to facilitate orders and meet demand.

Our client currently has domestic partners formed with distribution in Texas and a lab in Colorado. All products are tested and approved according to industry guidelines. Operations to this date have been internally financed and limited due to available cash on hand. Companies starting out in any industry typically start with their own money. If the company is successful, they quickly run out of their own resources and need to find a capital partner to continue to expand. This is the best problem a company can have, but stressful none-the-less.

Supply chain financing and purchase order financing (there are slight differences) meet this need by paying suppliers directly. By financing the cost of goods, our clients are able focus on building customer relations and not worry about the capacity to fill orders.

If your CBD business could benefit from purchase order financing, we would like to hear from you. Call us direct at 714-719-8966.

Invoice Factoring – More Than Financing

Invoice Factoring – More Than Financing

Invoice Factoring

INVOICE FACTORING – MORE THAN JUST FINANCING

Invoice factoring is one of the oldest forms of financing available to business.

The purpose of invoice factoring is to speed up your company’s cash flow. By speeding up the cash flow, business owners can scale their sales by leveraging responsibly. However, invoice factoring is more than just financing.

Benefits Of The Factoring Agreement

In a factoring agreement, the client engages the factoring company as their credit and collections department. In a factoring contract, all accounts receivable are collected by the factor from the company’s customers. This collection function serves in conjunction with the credit management of the customer base. The factor approves the customer for credit by conducting industry background checks using management systems not available to business owners (think of this like a personal credit report, but only for business entities). The factor can see the customer’s history of payment and financial condition. There may also be an insurance policy taken out on the customer. This insurance policy provides an additional layer of protection for the lender and a sophisticated credit management system for the business owner.

Grow Your Business And Reduce Your Fixed Expenses At The Same Time

As your company grows, factoring contributes to the bottom line. Instead of hiring more staff to manage the credit and collection functions (or any staff for that matter), you can outsource these responsibilities to the factor. The cost of hiring new employees, medical benefits, paid time off, investment and savings programs, etc. are all eliminated when using a factoring company.

The Factoring Advantage

Invoice factoring provides the client with financing to grow the business while at the same time managing the credit risk associated with that growth. Factoring companies have more resources available to them than the average business owner. The factor becomes a partner to their business versus simply an outside financier.

Could your company use invoice factoring to grow? If so, we would like to speak with you!

Patrick Zazueta | President
Huntington Coast Capital, Inc.
714-719-8966

Purchase Order Financing For Nitrile Gloves

Purchase Order Financing For Nitrile Gloves

PPE Update: Huntington Coast Capital is close to verifying new production allocations of nitrile gloves through several different suppliers. Once confirmed, these orders will be eligible for purchase order financing for nitrile gloves. The goods will be delivered to directly to the buyer’s location or a designated warehouse where they can be inspected prior to buyer payment.

Huntington Coast Capital is proud to serve the nationwide community of first responders, heathcare providers, governmental agencies and police and firefighters. If you have clients in need of purchase order financing for nitrile gloves, we would like to speak with you.

Our core business in traditional industries is still very much intact. We advise on a wide range of funding options throughout the United States in the following areas:

  • Supply chain financing 
  • Equipment loans and lease programs (learn more about our equipment loan platform offered through our subsidiary)
  • Lines of credit for working capital needs
  • Term loans for marketing, hiring staff and general expansion needs
  • Factoring services for accounts receivable financing that also provides for back office credit and collection functions
  • Purchase order financing
  • Asset based loans
  • Business acquisition financing
  • Inventory financing
  • Private commercial real estate bridge loans
  • SBA loans for business and real estate needs

Whether you are a startup or established, in need of $100,000 or $10,000,000 we have the capital partners to meet your needs. Contact us to see how we can assist in taking your business to the next level. To your success!

Patrick Zazueta
Huntington Coast Capital, Inc.
Direct: 714-719-8966
patrick@huntingtoncoastcapital.com
www.huntingtoncoastcapital.comBRE License #: 02090967

Where to buy PPE Products in large quantities

Where to buy PPE Products in large quantities

 

Where to Purchase PPE Products

 

Huntington Coast Capital has access to PPE Products. If you’re looking to know where to buy PPE products in large quantities, give us a call, 714-719-8966.

Inventory cost, quantities and delivery schedules vary, so please inquire to get the latest details. We can support sourcing PPE products in large quantities. Access to the following inventory is available for either spot buys or production run orders:

N95:       all masks on CDC list / NIOSH certified

3M 1860 surgical (from authorized distributor)

3M 8210 – multiple brands available

KN95:    all masks on FDA current list. Several brands as available

3-ply masks:     several brands available

Nitrile gloves: (4ml and 6ml)

Regular shipments supporting continuing orders from China

Regular shipments from Vietnam / Malaysia / Thailand (soon)

Gowns: isolation (level 1 – 4) – Non sterile, Sterile, Medical / Surgical, Waterproof

Covid 19 antibody test (South Korea)

Quick delivery of PPE products is available through domestic suppliers.

Are you looking for where to buy PPE products in large quatities? Contact us to discuss. For example, we recently had a client looking for where to buy PPE products in large quantities. This particular client wanted to start with an order of 10MM 3M N95 masks and then ramp up to larger quantities. The first 10MM needed to be on the ground and inspected prior to purchase. From there, items would be ordered on a production schedule and delivered as available.

We solved the client’s request by locating the 3M N95 masks in standing inventory and shipped it to a local warehouse for inspection.

Call us direct at 714-719-8966 to discuss your PPE Product needs!

Purchase Order Financing For PPE Products

Purchase Order Financing For PPE Products

 

Purchase Order Financing For PPE Products

Huntington Coast Capital has extended its service in the Purchase Order Financing For PPE Products space. We have partnered with a group that has a warehouse on the west coast. The benefit is that they have inventory available either on site or through their supplier network. The result is a faster response to much needed materials for hospital groups and government entities.

PPE Products remain in high demand. Resulting in a trend for faster delivery times. In response to this need, Huntington Coast Capital has access to products through our domestic partners. Favorable terms from our foreign partners continue to be available.

A sample list of current inventory is listed below. Are you in the fight against COVID-19? Huntington Coast Capital is here to help!

N95:  – all masks on CDC list / NIOSH certified

  •  3M 1860 surgical (from authorized distributor)
  •  3M 8210
  •  Kimberly Clark (distributor relationship)
  •  BYD (allocation and some US inventory)
  •  Giko 1200 NIOSH available US inventory
  •  Giko 1400 surgical available US inventory
  •  Powecom (allocation and some US inventory)

 

KN95:  – all masks on FDA current list

Several brands as available

3-ply:     several brands available

Nitrile gloves: (4ml and 6ml)

Regular shipments supporting continuing orders from China

Regular shipments from Vietnam / Malaysia / Thailand (soon)

Synmax gloves: (synthetic vinyl)

3.3ml excellent for non-medical uses

Gowns: isolation (level 1 – 4)

Non sterile

Sterile

Medical / Surgical

Waterproof

Hand Sanitizer:

LA manufacturer FDA compliant 40oz bottles through tanker loads

Covid 19 antibody test (South Korea)

Call us to discuss purchase order financing for PPE products! 714-719-8966.

Purchase Order Financing For PPE Products

Purchase Order Financing For PPE Products

Purchase Order Funding For PPE Products

Huntington Coast Capital is continuing its fight against the COVID-19 pandemic by continuing to secure purchase order financing for PPE products. Over the past few months we have facilitated millions of dollars in purchase order financing for our clients in the PPE space. According to UNICEF the demand for PPE products will continue for the foreseeable future and this means financing required to fill orders will continue to be in demand.

Many lenders in the PPE financing space have pulled back their purchase order financing due to problems experienced with some of the orders. Orders were being shipped late or incomplete and sometimes both, due to the huge demand. Huntington Coast Capital’s fund partner has an approved list of suppliers in China. They have worked with and established strong business relations. This partnership has greatly reduced supplier performance risk. By controlling each step in the supply chain to the best of their ability, they are mitigating the risks associated with supplier performance and quality.

Where do we go from here? Huntington Coast Capital will be partnering with another group to deliver PPE products directly within the next few weeks. The warehouse space will be located domestically and contain a broad range of PPE products for sale. This additional step will eliminate the supplier risk entirely and allow our clients a faster turn around for those urgent orders. We look forward to announcing the opening of this facility. The warehouse  space has been secured and the products are on their way!

If you are looking for purchase order financing for PPE products, we would like to speak with you.

Patrick Zazueta
Huntington Coast Capital, Inc.
714.719.8966

 

Purchase Order Financing For PPE

Purchase Order Financing For PPE

Huntington Coast Capital is proud to have been contributing in the fight against the COVID-19 crisis by providing purchase order financing for PPE products. Our asset based loan programs have secured purchase order financing for much needed supplies. These items include face masks, gowns, gloves, shoe covers and face shields.

Large purchase orders from counties, health organizations and hospitals from across the country have been filled thanks to the availability of capital in this unprecedented time. Without access to capital, supplies would halt and safety of our healthcare workers on the front lines would be compromised.

Purchase Order Financing For PPE

Are you an existing supplier of medical supplies in need of purchase order financing for PPE? Are you in need of additional capital to fill orders from your customers?

In this environment, we have seen huge demand because the order sizes are far too large for the average supplier. For instance, we have seen orders for a couple million dollars to over 100 million dollars. We have access to the capital required to fill these purchase orders.