Granite Gold

Case Study

Granite Gold eliminates the uncertainties related to its bank lending and simplifies its funding using C2FO’s suite of working capital solutions.

In 2004, the only place you could buy natural stone cleaners was at specialty stores—so cousins Lenny Sciarrino and Lenny Pellegrino decided to start Granite Gold.

The goal was to give homeowners easy access to the products they needed to care for their stone surfaces.

Fifteen years after its launch, Granite Gold’s stone care products are sold nationwide in major retailers like Ace Hardware, Walmart, The Home Depot, and Lowe’s.

Granite Gold natural stone product collection

The path to success wasn’t easy, however. Granite Gold’s rapid growth was almost derailed when access to working capital evaporated during the great recession.

The challenge

In 2008, several years after the company launched, homeowners were finally hearing the message about the importance of stone care.

Demand for the category was growing, and Granite Gold was closing its first deals with national retailers.

As large orders started coming in, Lenny Sciarrino, Granite Gold’s CEO and co-founder, needed cash more than ever. Then the recession hit, and lending dried up almost overnight.

“We had a lot of good things going for us but we didn’t have the capital to make them happen.”

Lenny Sciarrino, CEO and co-founder of Granite Gold

Granite Gold’s credit card company reduced its limits and its bank demanded their line of credit be paid down by 50%—threatening to shut down the line and convert the debt to a term loan if Granite Gold didn’t comply.

This diminished access to working capital hurt the company’s growth and revealed the need for a more reliable source of funding.

The solution

When Ace Hardware announced it was launching an early payment program to help vendors improve cash flow, Lenny took notice.

Through the program, he could request early invoice payments on demand by offering a discount using the C2FO portal.

He soon discovered other large customers offered early payments through C2FO as well, which increased the amount of working capital Granite Gold could access.

“The really great thing with early pay is that I get to pick the terms I’m willing to accept and use it whenever we need cash.”

Lenny loved the early payment option, but there was a catch—only 25% of Granite Gold’s customers offered a program through C2FO.

That’s when Lenny learned about C2FO’s Receivables Finance option.

“Some of my biggest customers weren’t on early pay. With the Receivables Finance solution, I now have access to working capital from those customers as well.”

Receivables Finance enabled Granite Gold to turn the invoices from the other 75% of its customers into a simple and scalable revolving line of credit.

Compared with using a bank, Receivables Finance didn’t demand burdensome covenants and created much less administrative work and headaches for Lenny and his team.

“With C2FO the technology is great. There’s an online portal where you can download records and see payments—you can see everything. It only takes a few minutes to upload invoices. It’s crazy how fast it is.”

The solution was so easy to use and reliable that Granite Gold consolidated all of its funding sources to C2FO.

Beyond just providing an early payment option, C2FO became Granite Gold’s primary source for working capital.

Lenny Sciarrino, CEO and co-founder of Granite Gold

“Having C2FO provide our working capital is what helped us grow. It helped us succeed.”

Results

By using C2FO, Granite Gold eliminated the uncertainties related to its bank lending and simplified its funding.

The company now has an easy-to-use and reliable source of working capital that ensures it can continue to grow.

You can learn more about Granite Gold here: https://www.granitegold.com/

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