Floriculture
This option offers companies quick access to capital to finance their immediate needs such as seasonal fluctuation
Deal Summary
Product
Factoring
Funding Line Amount
$500,000 USD
Company Type
Recruitment of staff for flower exporters
Industry Type
Floriculture
Location
United States
This company focuses on the supply of personnel in the flower industry. Its work model allows companies in this sector to hire employees on a seasonal basis. Flower marketers respond to the annual events that demand the most of this product and do not invest in unnecessary expenses such as payroll maintenance throughout the year.
In the United States, it is estimated that close to 110 million roses are sold to celebrate February 14. Growers around the world plant about 200 million flowers because of this date. There are several commercially important dates in the floral industry, such as Christmas and Mother’s Day, but Valentine’s Day is the most important date of the year.
In the United States, it is estimated that close to 110 million roses are sold to celebrate February 14. Growers around the world plant about 200 million flowers because of this date. There are several commercially important dates in the floral industry, such as Christmas and Mother’s Day, but Valentine’s Day is the most important date of the year.
Challenge
The use of factoring is common in this sector. This option offers companies quick access to capital to finance their immediate needs such as seasonal fluctuations, purchase of supplies, and payroll to meet large customer orders. Its objective is not related to accounts receivable problems but rather to have the liquidity to meet high demand.
Solution
The company acquired a $500,000 financing. They intend to have the payroll necessary to supply U.S. floriculture companies. This allows the entire sector to concentrate on other production factors, such as importing this product from countries like Colombia or Holland.
Several industries face these variations in demand. For example, in Latin America, the textile industry hires temporary personnel to increase sales for Christmas and New Year seasons. Through factoring, companies can make such hires and have a robust business structure to face large events successfully.
Several industries face these variations in demand. For example, in Latin America, the textile industry hires temporary personnel to increase sales for Christmas and New Year seasons. Through factoring, companies can make such hires and have a robust business structure to face large events successfully.
