Job Shop “Works” Out a Deal at Vendor’s Request
This is a twenty-year-old California-based metal and plastic fabrication job shop.
Behind on payroll taxes and to trade vendors, the Company’s largest vendor suggested the owner find outside financing to get caught up and for additional working capital. The vendor referred this owner to us.
We came in with $1,300,000 Accounts Receivable Line of Credit and Equipment Loan to take care of this borrower’s immediate needs and to smooth out cash flow. The deal required quick turnaround and we met the owner’s request of an end-of-month deadline.
This Company is not highly leveraged and does reasonably well. Its year end is May 31. So far, it’s having a decent year and is on pace to do slightly better this year than in years past.
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.