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Diamond Business Credit Provides $500,000 Credit Line to Distributor

February 10, 2016, 07:35 AM
Filed Under: Distribution

Diamond Business Credit announced it recently funded a $500,000 line of credit to a distributor of energy-saving replacement lighting. The company was unable to obtain the necessary working capital from traditional sources due to losses associated with the launch of a new retail business line. 
Capital was needed to keep product flowing from the Chinese manufacturer to fill sizeable purchase orders on the commercial side of the business.  At the same time, China was/is experiencing a liquidity crisis, as you may have heard.  Well the liquidity crisis for the Chinese manufacturer was a discount opportunity for this local importer.  Sizeable discounts for early payment were offered and accepted.  Discounts made possible with the line of credit extended and funded by Diamond.
The company is now positioned to continue its rapid growth at a now much higher GPM.  And additional discount opportunities are likely in the future as long as China’s liquidity problems continue. 

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