"The whole Bibby Financial team truly knows the meaning of customer service. They worked to provide us with a flexible and customized funding solution, and without their help, we wouldn’t have been able to grow at the same rate of speed we have in the past few years."

Mark Segal, CFO, Albany Packaging

Background

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 the helm in 1984 and employed some out-of-the-box thinking. Today, the company offers a diverse line of packaging, ranging from colourful 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.

Solution

Bibby Financial Services provided Albany Packaging with guidance and an asset-based lending solution 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.

Outcome

Since engaging with Bibby Financial Services Canada, Albany Packaging grew its revenue and landed several large new accounts.

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Business World International

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Albany Packaging

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