Challenged by Negative Cash Flow
This public company, a recent start-up, had a purchase order for 40,000 units of a high-tech product from the largest U.S. home improvement chain. The company was operating with a negative cash flow, however, and did not have the capital to produce the units.
We opened an irrevocable letter of credit to allow for the production of the units. The successful, on-time delivery of the 40,000 units provided all-important credibility to the company, which leveraged this success to secure additional orders for its technology product.