Total Apparel Group, Inc., a master distributor and licensee of
international trademarks in the branded apparel, footwear and
accessories sectors, entered into a receivables factoring agreement
with Coral Capital Solutions that will expedite the cash flows of the
company and provide collection services, while reducing credit risk.
“Coupled with our recently announced credit facility, this factoring
agreement arms us with a powerful tool to accelerate growth,” said TAG
CEO Janon Costley. “For those investors not familiar with factoring
arrangements, from time to time TAG may sell our receivables to Coral
at a moderate discount to the total bill. We can then immediately use
the cash advance received from Coral to place more orders with our
manufactures. Coral will also assume the credit risk of certain
customers and continually monitors the credit worthiness of existing
customers through its credit approval process. In addition to these
services Coral also facilitates and manages the collection of payments
from the customers whose receivables it has purchased from the Company.
Extremely well capitalized, Coral has the required funds to support the
rapid growth of our business – allowing TAG to focus on adding quality
new customers and rapidly processing new orders.”
“We are proud to add TAG to our pool of clients and to partner with
them on the U.S. launches of FIFA Collections, official 2010 FIFA World
Cup merchandise and the Kappa and Robe Di Kappa brands. Coral brings
unparalleled liquidity and capital to allow TAG to fully capitalize on
this opportunity, and to achieve its short and long term sales
objectives,” said Coral Capital Solutions CEO Rishi Kumar.
