Sourdough Bakery Secures Production Financing from 1st Commercial Credit to Meet Growing Demand
Sourdough Bakery Secures Production Financing from 1st Commercial Credit to Meet Growing Demand
PRNewswire/ -- 1st Commercial Credit, a leading provider of accounts receivable financing and purchase order financing solutions, has announced the funding of a fast-growing sourdough bakery in the Northeast region through accounts receivable factoring and purchase order production financing.
The bakery, originally launched as a direct-to-consumer operation, quickly expanded into small grocery chains, coffee shops, restaurants and large private label distributors. Today, it has secured significant orders from large retailers and regional grocery chains, reflecting the rising demand for its artisanal sourdough bread and sandwiches.
While growth has been strong, the bakery's owner recognized the challenge of financing larger purchase orders without straining day-to-day operations. Packaging suppliers, payroll obligations, ingredient costs, and net 60-day credit terms from major buyers created financial pressures that required an outside solution.
"Everything goes smoothly when businesses can self-finance growth—until the big orders arrive," said Raul Esqueda, President of 1st Commercial Credit. "At that point, cash flow gets siphoned into longer production cycles with no income to offset the shortage, and companies risk falling behind on their existing operations. That's where we step in."