$1M in Funding Helps Fan Merch Printer Keep Up with Surging Demand
Funding Received:
$1 Million
The Challenge
When touring rock bands and professional sports brands began filling stadiums again in 2023, Tukes, Inc., a Pennsylvania-based company specializing in custom embroidery and screen printing, saw a dramatic spike in purchase orders from an eager national customer base. Tukes was accustomed to meeting the demand for top-quality products and services, and had built a stellar reputation catering to some of the world’s best-known music artists and their fervent fanbases.
Not to be outperformed, the company also achieved Nike-certification to serve Major League Football and other professional sports organizations. But the surge and volume of orders required large payments to its overseas supplier, followed by a long wait for the apparel shipped by air-freight or sea vessel before its final leg by truck.
By the time Tukes received its material supply, completed orders and shipped custom merchandise across the country, many weeks had passed. And only then would the clock start for a customer’s 60-day payment terms. Cash was needed to maintain production and manage their reputation. 30 years in business and 80 full-time employees couldn’t prepare them for what happened next.
As Tuke’s co-owners reached out to traditional and alternative lenders for capital, they were told one of two things: Their business was either growing too fast, or the amount of capital requested was too small. In other words, despite the longevity of their business, strategic success, and opportunity to grow, they found themselves without access to the capital required for the moment. A call from a Paychex account representative changed everything.
Our Solution
Following an introduction by Paychex, our team jumped on a group call with the Tukes owners, controller and their attorney to address all contract and funding timeline questions. Together, we made a couple adjustments to the proposed contract during the call until everyone on the client side was satisfied and ready to move forward. Our account manager was assigned and began leading the client’s communication with customer accounts payable, freeing up the client to focus on important new business relationships and growing demand for fan apparel.
“A great relief”
“We talked to more than five lenders, including banks and big factoring firms. None would consider the transaction—our business was either too young or our total funding request was too small. We were stuck in the middle without an option until Paychex introduced us to their funding solutions team. They funded our unpaid invoices and managed the payment arrangements with our customers.
Having Paychex on our side was a great relief. Their reputation reassured our customers that all purchase orders were being honored and our ability to deliver top-quality products on time was strengthened by the capital. I recommend Paychex Funding Solutions to any business owner who needs access to risk-free capital.”
R.T. Banks
Co-Owner, Tukes
Measured Results
90% Advance Rate
A 90% advance rate on receivables funding provided Tules with quick cash to continue fulfilling orders and prepare for new orders.
Funds Being Used
Funds being used to purchase more supplies and maintain cash flow through the off season.
Happy Client
Tukes was pleased to know Alterna could quickly confirm the credit-worthiness of their customers and underwrite the contract with accurate information.
Continued Support
Alterna’s account manager has continued to support Tukes to expedite invoiced during purchase order fulfillment.
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.
