$5M Financing Bridges Retail Payment Cycles for Rapidly Expanding Baby Food Brand
Funding Received:
$5 Million
The Challenge
After being acquired by a private equity firm in 2021, this New Jersey-based producer of organic baby food and toddler meals was well-positioned for aggressive expansion of distribution, licensing and market share. New distribution was secured in Target, Walmart and CVS nationwide, growing the company’s baby food market footprint by 40%. Additional deals with major retailers in Canada secured entry into a new market. And through a licensing partnership, the company launched 15 innovative products.
With a new and bigger playground, the company was ready to take even bigger steps: higher-margin products in high-growth categories for older kids.
Our Solution
Although critical for significant business growth in the consumer food and beverage industry, distribution deals often come with longer payment cycles that tie up working capital. Our team’s familiarity with the industry enabled an efficient underwriting process for an accounts receivable financing credit facility, featuring highly-competitive rates and quick delivery of funds.
We were the clear choice next to other alternative lenders. The client is successfully pursuing growth strategies, providing healthy and convenient nutritional options to families across North America as their children grow.
Measured Results
85% Advance Rate
85% advance rate on accounts receivable financing
Expanded Markets
Funds being used for fulfillment in expanded markets
New Product Development
Funds making it possible for new product development
Partner with Alterna
If your business needs faster, more flexible access to working capital, Alterna is ready to be the partner behind your next move.
