BACKSTORY: The company has fulfilled more than 1,000 contracts by providing janitorial, paper, and safety supplies to public buildings and schools. It has made a name for itself by servicing large, commercial entities in the public and private sector.
PROBLEM: COVID-19 impacted much of the company’s client base which, in turn, led to its own cash flow issues that endangered commitments made to trusted customers and suppliers. Merchant cash advance loans exacerbated an already depleted cash flow and having to declare bankruptcy was something that was reluctantly considered.
SOLUTION: Becoming part of the TAP ecosystem assisted this viable, yet troubled, company in a number of ways:
- A fulfillment financing strategy provided revolving lines of capital to fulfill orders and support growth, keeping the supply chain in motion
- Negotiated agreements with both suppliers and customers provided more favorable order terms; litigation was settled with existing debt holders
- Relationships were formed with new commercial partners to diversify the supply chain
- Accounting systems were institutionalized to meet current best practice standards
The upside of this corporate makeover is the company is once again a profitable player in the facilities maintenance supply industry.
