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Financing Challenge:
An Electronics Component Distributor had a large order from a Fortune 50 Company. After months of courting this potential customer, this was the first order received from the new Fortune 50 customer and the Company wanted to demonstrate its vast resources and ability to react quickly. However, the Company was at its credit limit with the supplier that held these scarce components and was required to pay in advance to obtain these parts. The Company had been turned down by several banks as its balance sheet and historical operating results could not support traditional bank financing.

Creative Financing Solution:
Asset Enhancement Solutions, LLC (AES) arranged Purchase Order Financing (P.O. Financing) with a lender that paid for 100% of the cost of the components directly to the supplier on behalf of the Electronics Component Distributor. As a result, the Components were shipped to the customer on a timely basis. The Company made a significant profit on this initial order and subsequently received re-orders from the Fortune 50 customer. The Company also used the P.O. Financing Facility to finance large orders received from other customers. The Company now had a competitive advantage as it had a facility in place to handle large orders that companies its size typically could not handle.

Neil Seiden, 516-767-0100

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