FORT LAUDERDALE, Fla., Oct. 22, 2012 /PRNewswire/ -- The Singing Machine Company ("Singing Machine" or the "Company") (OTCBB: SMDM) proudly announces it has secured a Factoring and Loan agreement with Crestmark Bank ("Crestmark"). The terms of the Agreement will provide the Company with up to $5 million dollars in accounts receivable financing.
The $5,000,000 facility is based on borrowing against eligible domestic accounts receivable which will allow the Company to significantly improve its cash flow as it enters the holiday season. The terms of the two-year agreement provide Singing Machine with an immediate cash advance on its eligible accounts receivable and will provide the Company with improved working capital to operate and grow the business.
"We have been actively seeking financing for the company and are extremely pleased that Crestmark has recognized our improved financial performance and feel confident with the future growth of the company," commented Lionel Marquis, CFO. "The Company has done an impressive job to get back to profitability and this factoring deal represents a big milestone in our plans for the future." Gary Atkinson, CEO added, "Having this loan agreement in place will provide us with the flexibility to grow our domestic business and give us the resources to strengthen our relationships with our overseas vendors."
About Crestmark Bank
Crestmark is a nationally known and respected FDIC-insured bank that provides innovative financial solutions for small- to medium-sized businesses. Financing solutions include asset-based lending, accounts receivable financing, lines of credit and factoring. Crestmark finances most business-to-business companies, and has extensive experience in helping many industries including transportation, manufacturing, staffing, government contractors, apparel and furniture manufacturing. Crestmark is headquartered in Michigan, with offices in Florida, Louisiana, Tennessee, New York, Alabama, California, Illinois, Ohio, Missouri, North Carolina, and Texas. www.crestmark.com
About The Singing Machine
Incorporated in 1982, The Singing Machine Company develops and distributes a full line of consumer-oriented karaoke machines and music under The Singing Machine™, SMDigital™, SoundX™, and Sound X Kids™ and other brand names. The first to provide karaoke systems for home entertainment in the United States, The Singing Machine sells its products in North America, Europe and Australia. The Singing Machine is also the first to offer digital music downloads for play on home karaoke machines. See www.singingmachine.com for more details.
This press release contains forward‑looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward‑looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2012. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward‑looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward‑looking statement to reflect events or circumstances after the date of this release.
SOURCE The Singing Machine Company