Quartix Smoothes BKF’s Cash Flow Curve With 1 Click During Peak Seasons
Sam Wieder, COO of BKF (Birdsboro Kosher Farms), needed to drastically increase his production overseas in order to make sure that come peak season when purchases ramp up he would have ample supplies. With Quartix, Birdsboro Kosher Farms was able to fund timely individual vendor payments to guarantee supply continuity without any commitments or fixed costs.
The Client (‘buyer’): a poultry and meat processing & importing company
Birdsboro Kosher Farms (BKF) is a poultry and meat processing company located in Birdsboro PA, providing big-box food retailers with poultry and meat products adhering to the highest standards of Kashrus and sanitation. BKF manufactures 100% antibiotic-free, exclusively vegetarian-fed Kosher Chicken, raised in stress-free living conditions under close supervision of veterinarians and food manufacturing experts it also manufactures 100% hormone and steroid free Beef in South America that is imported and sold in The United states
The Challenge: peak season applies pressure on cash flow
BKF produces and sells its poultry and meat products throughout the year, managing its cash conversion cycle to optimize its cash flow and working capital position. Due to the seasonal nature of the business, customer demand for BKF’s products rises sharply during certain times of the year. Due to the time lag between when a chicken is raised or beef is manufactured until it reaches the stage at where it can be sold Building up inventory is crucial to guarantee timely delivery of products to customers. However, while customer revenue is many months away, vendor payments had to be made at the time of production in order for the supply to arrive on time, creating cash flow gaps.
BKF considered approaching traditional lenders to obtain a line of credit. BFK would be forced to incur unnecessary costs given the company needs funding for only a few weeks out of the year. It needed a flexible facility that’s accessible, integrates seamlessly into their system,and needs to be a ‘pay-per-use’ model.