TSL Express Daily News

BIRMINGHAM, Ala., Nov. 17, 2021 /PRNewswire/ -- Porter Capital, a go-to provider of alternative financing solutions for businesses, has funded an $8.5MM credit facility to a Tier 1 Auto Parts Manufacturer.

Upon learning its current bank-owned factoring company had sold, the foreign-owned US subsidiary operating as a Tier 1 Auto Parts Manufacturer was told to find a new factor. As a rapidly growing manufacturing business doing $50MM in revenue, the prospect was a perfect match for Porter Capital's funding capabilities.

Engaged by the banking officer to refinance the relationship, Porter extended an $8.5MM credit facility to provide enough availability to take out the existing lender and give the client room to grow and expand operations.

John Cox Miller, Senior Vice President of Porter Capital, said, "85% of our client's revenue comes from parts sold to Audi, BMW, and Daimler. We are not overly concerned when it comes to a client's revenue being concentrated in three customers. However, we were challenged by our inability to obtain a personal or validity guaranty due to foreign ownership. Fortunately, our credit committee gained comfort with a corporate guaranty given its track record with customers."

With its current production facility at roughly 200,000 square feet, the manufacturer is in the process of adding an additional 150,000 square feet to keep up with demand. The semiconductor shortage caused revenue to dip; however, the company is forging full speed ahead.

Porter's credit facility allows the client to capitalize on the business without giving up equity and increase revenue without being subjected to restrictive financial covenants.

"We are proud to support and add another client into our portfolio at Porter Capital. Manufacturing businesses in high-growth mode are a perfect fit for Factoring, said Porter Capital's CEO, Marc Porter."

About Porter Capital:

Porter Capital Corporation was founded in 1991 by brothers Marc and Donald Porter in Birmingham, AL. Porter offers working-capital solutions to businesses all over the country in a variety of industries. As a direct lender and factoring company, Porter Capital has provided over $8 billion in funding since inception. Porter Capital offers Invoice Factoring and Asset Based Credit Lines up to $15MM. Since founding the company, Porter Capital has expanded to include a special transportation division known as Porter Freight Funding. The Porter businesses continue to grow by providing working-capital solutions, emphasizing personalized, dedicated customer service without sacrificing speed and efficiency.

To know more about Porter Capital Corporation and how it can be a working capital solution provider for businesses, call 1-800-737-7344 or visit its official website - https://www.portercap.com/.