No Bugs in This Deal
The company is a California-based sub-contractor of fumigation services. Its clients are both commercial and residential.
For three years, the company suffered losses such that the balance sheet was upside down and the company was in violation of bank covenants. In addition to having to exit its bank, the company needed a larger line in anticipation of increased sales. The deal was referred to Celtic Capital by a broker.
In an initial review of the deal, the receivables did not generate what was owed to the bank. As such, the owner personally paid down a portion of the payoff to make the deal work. Celtic Capital came in with a $1,000,000 Accounts Receivable Line of Credit which was larger than the bank line, as requested by the business owner.
This business is somewhat seasonal and picks up significantly after the rainy season. As we move into summer, with Celtic Capital’s larger credit line, the business owner is now in the position to take advantage of his projected increase in sales.
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.