In late October of this year, The Singing Machine Company entered into a factoring agreement with Crestmark Bank. The deal provides the thirty year old karaoke machine company with up to $5 million in accounts receivable financing. The deal went down as The Singing Machine Co. enters into the peak holiday season. According to CFO Lionel Marquis, the deal represents a “big milestone in our plans for the future” and CEO Gary Atkinson says having the agreement in place will provide flexibility and strengthen relationships both at home and abroad.
The Singing Machine Co. is an example of the type of business that factoring helps most- a highly seasonal business that experiences uneven cash flow during off seasons. Their deal with Crestmark will allow them to expand overseas and tap into new markets, which encourages growth and increased profitability. Factoring their accounts receivable was a smart move for this karaoke company, one which will hopefully allow them to reach record highs- almost as high as the notes their customers fail to hit.
For the full article, follow this link: The Singing Machine Company inks 5 mln in accounts receivable financing.