A growing manufacturer received its largest ever order of $13 million from a Fortune 500 company. Sadly, they realized that several problems needed to be resolved in order to be able to accept this order. The factory needed $1.2 million for materials and inventory, $1.6 million to upgrade some of their CNC machines, and about $600,000 for additional space and staff. To make matters worse, the company making the purchase typically paid their invoices 90 days later, which meant that the factory would have to cover almost $3 million of expenses over this 90-day period. Despite the enormous profit potential, the factory’s bank turned down their request for financing, due to the sheer size of the loan requested. It looked like the factory owners would have to turn down the biggest growth opportunity in the history of their company.


Factory Solution

The manufacturers were faced with a complex problem that required a multi-prong solution. First, Westfield Funding provided them with an inventory advance to buy materials. The terms of the advance included a 90-day grace period, during which no payment needed to be made. Then, Westfield Funding provided $1.6 million in equipment financing with no money down and another 90-day deferment on the first payment. Finally, Westfield Funding provided a line of credit of $800,000 to cover salaries and additional space, leaving the factory $200,000 for unforeseen expenses. Not only was the factory able to solve all of its financing problems, but Westfield Funding also provided them with a factoring program. The factoring allowed them to get paid on the day of delivery, instead of 90 days later. Needless to say, the factory made an enormous profit and became a Westfield Funding success story.

Trucking Company

A small trucking company with a fleet of eleven trucks signed a large new contract with another company to handle all of their logistics and transportation. The contract would bring in approximately $12 million annually. However, the trucking company needed an additional 30 trucks ($4.5 million) as well as 40 trailers ($3.8 million) and 10 forklifts ($810,000). The additional workforce expansion would cost them an estimated $400,000 per month. They also needed to purchase a storage facility ($900,000) for the new equipment. Unfortunately, the trucking company was turned down by their bank, due both to the size of the contract versus past revenue history, as well as prior credit issues.


Trucking Company Solution

The primary reason for the bank’s refusal to lend money to the trucking company was that the amount of financing required greatly exceeded past revenues, which were based on a much smaller fleet of only 11 trucks. Westfield Funding was able to help by providing three separate loan products, one for equipment financing, another for commercial real estate, and a third for workforce expansion. Equipment financing covered costs of $9.1 million with zero down. The commercial mortgage covered $720,000 of real estate costs, leaving only $180,000 for the down payment. Westfield Funding also helped the trucking company secure an SBA loan of $1.2 million to cover the rest of the expenses and leave a small cushion for emergencies. The financing provided by Westfield Funding helped the trucking company quintuple its size in under one year!

Medical Office

A radiologist who had been working at a hospital for five years wanted to start a radiology clinic with two colleagues. They only had a combined $300,000 in savings to cover almost $5 million in expenses. Their goal was to buy an existing medical office building for $1.9 million and purchase $2.5 million of MRI, X-ray, and other medical equipment. The doctors’ bank declined their loan request because they would not provide this much financing for a startup.


Medical Office Solution

A loan officer at Westfield Funding discussed several options that could help the doctors achieve their goals. The plan that the doctors ultimately chose consisted of four steps. Westfield Funding secured a real estate loan of $1.6 million for the office building. The necessary equipment was financed on a special program for doctors and allowed them to purchase the equipment with no money down. Another special program provided a $2 million line of credit via the cross-collateralization of other assets already owned by the doctors. Finally, the loan officer also set up a factoring program to advance payments on the clinic’s medical billing and to ensure that there would be no immediate cash-flow issues after opening. This plan worked so well that the doctors ended up not needing the advances on billings, although having this backup option gave them a great deal of comfort in moving forward. The clinic ended up as another Westfield Funding success story.