At Hedaya Capital Group, we take pride in empowering small and midsize businesses with the financial support they need to thrive and succeed. Through our tailored funding solutions based on accounts receivable, we have helped numerous businesses overcome financial obstacles and achieve their growth goals. In this section, we present a collection of case studies that highlight the remarkable transformations and successes our clients have experienced with our assistance. Learn more, and if you’re looking for capital to grow your business, contact us today.
Long-term Partnership Drives Steady Grow 》
A Women’s Fashion Company, headquartered in New Jersey with showrooms in New York's fashion district, imports women’s sweaters and sells to mall specialty stores and well-known off-price retailers.
Traditional banks were unwilling to offer financing to the Company as a start-up in 2014. They needed working capital to purchase inventory, pay operating expenses and invest in growth opportunities. Their accountant recommended two factoring firms, one of which was The Hedaya Capital Group.
Why the Company Chose The Hedaya Capital Group
The Company trusted Hedaya’s expertise in the apparel industry and ultimately chose us because we were willing to finance a small but growing company. They wanted a long-term financing partner who could scale their size of the working capital facility as their business grew.
“Hedaya offered favorable terms and they were flexible in supporting our business beyond what we would have been able to access with traditional financing as a startup. I like the team and appreciate their knowledge of the retail world. They helped protect my receivables by providing factor credit approvals to ensure my customers were creditworthy and guarantee payment. I was not willing to take that risk on my own, even with good credit customers.” -Company President
How Hedaya Capital Helped the Company Growth
Initially, we provided a $750,000 factoring line of credit in 2014, enabling the fledgling company to focus on growth instead of worrying about cash flow issues. The facility was steadily increased through the years as the company grew, and in 2021 over $3 million in invoices were financed. We recently provided Purchase Order financing to support the Company’s extraordinary growth, enabling it to double sales in 2022 to $6 million.
As a startup, the Company did not have an established credit history with overseas factories. We quickly helped with Letters of Credit Financing to serve as a guarantee for the payment of inventory purchases. The letters of credit were invaluable in establishing and building new vendor relationships and expanding sales.
By serving as a launchpad for the startup company, our financing enabled the company to grow and expand rapidly to over $6 million in sales, and the factor credit approvals allowed the company President to sleep easy knowing that he was guaranteed to get paid.
With the comfort of having a reliable, long-term partner such as Hedaya, the company has the peace of mind knowing they will always have the cash on hand needed to invest in inventory purchases and meet payroll and operating expenses.
Oil & Gas Pipeline Services Company Achieves Exponential Growth 》
An Oil & Gas Pipeline Services Company performing tests and inspections on welded joints for the construction of new oil and gas pipelines was experiencing strong growth. The Company, located in Alberta, Canada, is an affiliate of a U.S.-based firm with branch operations in the U.S., U.K., and Canada.
In 2021, the Company needed working capital to gear up for large contracts it received for a number of new pipeline projects coming online. Cash was needed to upgrade and repair equipment, and support the expanded payroll, benefits, and other staffing costs.
Why the Company Chose Hedaya
The Company’s management hired a consultant who introduced them to Hedaya. The consultant knew we were a good fit philosophically, though at the time we were not set up to factor Canadian operations. The Company appreciated our persistence and innovative approach and chose us because we understood their situation and knew how to help.
“Hedaya consistently worked from a position of ‘Let’s find a way to get this done.’ We appreciate their creative approach and willingness to go the extra mile for us.” – Company CFO
How Hedaya Capital Helped the Company
Speedy Setup and Creative Solutions: We immediately met with our bank to expand our existing loan facility to enable us to borrow Canadian dollars. Additionally, we broadened our relationship with our re-factor to allow for the collection and management of Canadian Dollar receivables. With the help of our Canadian counsel, we were able to complete our due diligence and document the facility in under a month’s time. Hedaya is proud to have established a Canadian factoring platform in a very short period of time to provide a facility to meet the Company’s cash flow needs.
Fuel for Growth: Hedaya Capital provided a CAD $2 million Factoring Facility, which enabled the Company to focus on growing the business and not be distracted by funding issues. By using their accounts receivable to fuel working capital, they now have the cash on hand needed to invest in new projects and people.
With the increased funding, the Company was able to support tremendous growth. They began factoring with us in May of 2021 and finished the year with CAD $15.2 million in revenue. For 2022, they were projecting $20 million in revenue but ended the year with $38 million, considerably exceeding projections. To accommodate the continued growth, we increased funding to the Company from $2 million to $3.5 million, helping them achieve an expected revenue of $50 million for 2023. We are proud to have provided the working capital support that enabled this company’s extraordinary growth!
Let Us Help You Grow Your Business
These case studies exemplify how Hedaya Capital Group has supported businesses across various industries by providing customized financing solutions. By leveraging their accounts receivable, we have helped our clients overcome cash flow challenges, seize growth opportunities, and achieve sustainable success. If you are a small or midsize business seeking reliable funding options, contact Hedaya Capital Group today to explore how we can assist you in achieving your growth aspirations.