AGV America, which is based in Texas, has obtained from Gateway Commercial Finance a factoring facility for invoices worth $1.25 million in order to secure additional working capital to aid its growth.
AGV America offers automation solutions to manufacturers and distributors, including the use of autonomous robotics in warehouse and industrial operations. It runs independently of individual equipment manufacturers and thus is able to make recommendations and integrate technologies according to each customer’s particular needs.
The updated financing arrangement takes the place of the previous credit facility provided by a local bank, which had a limited ability to lend, especially in the case of invoices with payment terms of up to 90 days.
Michael Jones, who is the President of AGV America, stated that a number of the company’s customers are firms on the Fortune 500 list, but the financial strength of those customers did not much enhance the borrowing facility available through its earlier bank credit line.
By means of its factoring facility, AGV America is able to obtain financing based on its eligible outstanding invoices, which in effect turns its receivables into more immediate working capital. The financing is expected to enable the company to keep up its cash flow as it takes on bigger projects and looks for new business opportunities.
Marc J. Marin, Managing Director of Gateway Commercial Finance, stated that the transaction shows how invoice factoring can provide growing businesses with extra liquidity when conventional bank financing is not sufficient to meet their working-capital needs.
Source: ABF Journal
Author: Brianna Wilson
Original Link: https://www.abfjournal.com/gateway-commercial-finance-provides-1-25mm-invoice-factoring-facility-to-texas-based-autonomous-robotics-company/