Albany Packaging, Inc. is a Toronto-based custom box packaging company founded in 1947. A major player since inception in traditional boxes, the company experienced tremendous growth after a new owner took helm in 1984 and employed some out-of-the-box thinking. Today, the company offers a diverse line of packaging, ranging from colorful gift boxes and hot dog trays to bakery boxes and unique take-out food containers.
However, like many manufacturers, the company eventually found itself in need of working capital due to the nature of the business, in which invoice payments are often profoundly delayed. Additionally, the 2012 acquisition of equipment that promised long-term rewards resulted in a reduction in working capital in the short-term. Albany Packaging needed cash flow for daily operational requirements, such as payroll, monthly fixed costs and supplier payments.
Bibby Financial Services provided Albany Packaging with guidance and an abl loan based on two of the company’s untapped resources – its inventory and invoices. The company first engaged with Bibby Financial Services Canada in May 2014 for a $1.5 million factoring facility with a $300,000 inventory loan incorporated into the solution. In May 2015, the company reengaged Bibby Financial Services for a $2.5 million factoring facility with a $500,000 inventory loan.
Since engaging with Bibby Financial Services Canada, Albany Packaging grew its revenue and landed several large new accounts. Because of its continued success with Bibby Financial Services as a strategic financing partner, the company recently signed onto a two-year extension with the firm.