Hummus Manufacturer Looking to Fly High in the Airline Industry
This is an Oregon-based company that manufactures hummus and is a co-packer of various other food products. With a product (hummus) that is shelf stable meaning it needs no refrigeration prior to opening, the owner wants to grow that side of the business and has been targeting it to various airlines. The company has made some inroads in that industry – airlines like the stable shelf-life aspect of the product along with the fact that the company packages it in travel size.
For the past year and a half, the company has had an equipment-only loan with us. Its accounts receivable has been financed by a bank-owned asset based lender based in Los Angeles that recently decided it wanted to exit the asset based lending business. Our client approached us to take out the bank. We were concerned there may be PACA issues, but as we wanted to help our client, we hired a PACA-specialist attorney to look into the matter. Fortunately, there were no PACA issues and we were able to easily move forward with financing the receivables.
While the deal was in due diligence, the exiting bank put a great deal of pressure on the owner so he paid off the bank himself, with personal funds. Once we came in with our $2,250,000 Accounts Receivable and Inventory Lines of Credit, we had the owner pay himself back.
The company has a solid growth plan going forward, especially on the manufacturing side of the business. We’ve had a good affiliation with the company on the equipment-only loan relationship; we like the owner, the CFO, and we believe the company is a good fit for Celtic Capital. We have no doubt in this business’ ability to meet its growth goals.
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.