Celtic Capital “Hops” Up for Craft Beer Wholesaler and Brewer
The Company
This Company is a New Jersey-based wholesaler and brewer of craft beers. It was founded in 1996 and purchased by an equity group in 2016.
The Situation
After losing money in each of the last two years, the Company’s bank asked it out. The equity group negotiated with the bank and a pay-off agreement was reached. Looking for an asset based financing solution as the source of funds to pay off the bank; the Company’s majority owner contacted Celtic Capital.
The Solution
We provided a facility of $850,000 ($200,000 Accounts Receivable ‘A/R’ Line of Credit and a $650,000 Equipment Loan). The A/R supported a larger line but based on the Company’s cash flow projections and the size of the Equipment Loan, they felt the smaller line would serve them well.
The Result
Projections show an improving market with forecasted growth coming later this year and even more in 2022. With plans for a re-tooled management team who can turn things around, future expectations are high.
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.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.