Aurous Facilitates Acquisition1/15/2022 Over Advance, Pharmaceuticals, Purchase Order Financing 0 Comments
A domestic pharmaceutical company based on Long Island was in heavy debt and needed capital to fulfill its orders. Their factor turned to Aurous Financial for assistance. Within four months, Aurous Financial was able to structure a deal that attracted significant equity funding from an investor and saved the Factor millions of dollars.
A domestic pharmaceutical company based on Long Island was in heavy debt and needed capital to fulfill its
orders. Their factor turned to Aurous Financial for assistance. Within four months, Aurous Financial was able to
structure a deal that attracted significant equity funding from an investor and saved the Factor millions of dollars.
When a large factor introduced Aurous Financial to this company, they were in a very unfavorable position
financially. The company was in an over-advanced position of approximately $25 million with their factor. The factor
feared heavy losses on the account given the current position and future forecast of capital needs.
With their business struggling and customer demand rising, the company needed to develop new ways of paying
suppliers. They couldn't pay them without a financing option and would suffer inevitable loss if funding didn't come
The Solution: Aurous Financial saved the day by providing purchase order financing.
The specialists from Aurous did a thorough assessment of the pharmaceutical company's operations. Then, they
helped them identify risks that could compromise future growth potential.
In two and a half months of working with this company, Aurous financed 23 deals netting approximately $5 million.
And they funded most of these transactions within 24 hours after the purchase order came in!
The average transaction from funding to repayment was 23 days.
Using their custom tracker, Aurous provided all the parties involved with transparency into the funding and status
of shipments. As a result, everyone had a clear picture of what was happening, and there were no surprises or
setbacks throughout the process.
Results - An Equity Deal in 4 Months
Aurous' contribution to the company increased the value of accounts receivables. This increase attracted the
attention of an investor who invested enough capital to satisfy "100 cents on the dollar" for both the factor and
Aurous was able to help this pharmaceutical company get back on its feet and improve its standing in the industry.
With purchase order financing, they could pay suppliers immediately and improve their relationship with customers.
The company gained a better reputation, more business, and an influx of investment capital. Aurous is proud to
have been a part of this success story.