Bibby Financial Services (BFS) announces the provision of a $2 million accounts receivable and inventory facility to a California-based fruit snack business. The snack producer owns its supply chain from start to finish and is regarded for its deep relationships with the farmers who harvest fruits and vegetables for its signature products. The company will use the funding to support expanded nationwide distribution resulting from increased demand for its products.
Additionally, the BFS funding allowed the company to split from its international parent company, a move that will better support an enhanced growth strategy. The facility is adaptable with room for expansion as the company continues to mature. Funding comes at an ideal time as more consumers turn to healthy snack alternatives. According to industry analyst firm IRI, Americans have increased their snacking habits by 67% over the past five years. Additionally, 57% of consumers are supplementing their diets with more natural and fresh food options, up from 55% reported three years ago, according to a Nielsen report. The increase indicates that Americans are paying more attention to their health and the types of snacks they consume.
“While the natural food industry is robust and experiencing strong growth, traditional bank funding is still not a viable option for many companies in this market,” says Ian Watson, Bibby Financial Services’ Chief Executive Officer, North America. “We pride ourselves in providing customizable and flexible funding options to companies that span a diverse range of industries and sizes.”
Fruit Snack Company Receives $2 million in Funding
Factoring facility with inventory loan enables California-based company to expand distribution
July 26, 2016