Sallyport announced the provision of a $1,000,000 factoring facility to a rapidly growing electronic components distributor, referred to by one of Sallyport's trusted broker partners. As the company expanded its footprint and order volume, so did its working capital requirements. Longer receivable cycles and increased purchasing demands were placing pressure on day-to-day liquidity - a common challenge for distributors experiencing fast, sustained growth. 

Sallyport's factoring facility will provide the consistent cash flow needed to smooth their cash cycle, strengthen operational stability and enable them to seize new opportunities without delay. With a solid domestic foundation already in place, the company’s long-term goal is to increase sales across the U.S. and expand internationally. This facility strengthens their financial footing as they continue penetrating new markets and deepening relationships with OEMs and global distributors. While no incumbent lender was involved, the client evaluated multiple funding options. Ultimately, they chose Sallyport for our strong combination of competitive pricing and flexible structuring, tailored to support distributors with high growth trajectories and fluctuating working capital needs. 

“The owners of the business collectively have over 40 years’ experience in electronic components distribution. Their combined knowledge, experience and customer relationships have been key to their success from the beginning and we look forward to seeing them grow internationally with our support,” said Patrick Zazueta, VP Business Development, Sallyport.