President’s Message (January 2025)

Yeehaw!! 2024 was a bit of a wild ride, full of stops and starts and some head-scratching moments but through it all, we came out stronger on the other side.

As I shared in last July’s Letter, in terms of new business, 2024 started out quite busy. Then in mid-March, for about three months, things came to an abrupt halt.

As we moved into the second half of the year, new business picked up again keeping us busy right through to the end of the year. In fact, our average year-end funding was double what we typically see. What a ride!

We attribute most of this growth to the fact that we started seeing more deals at the larger end of our lending range which is why in September, we raised our lending limit from $5 Million to $8 Million. This increase is a result of our long-standing commitment to adapt to market demands and strengthen our relationships with you, our valued referral sources. With our expanded lending capacity, we now provide even more flexible financial support to meet the growing needs of your referrals. It’s a win-win for everyone.

Even though in 2024, more of our clients experienced problems than we’ve seen since the pandemic (mostly relating cash flow), we’re at the tail end of those issues and see no significant challenges to be concerned about on the horizon. Overall, our portfolio remains healthy and clients are optimistic about 2025. Many believe the year will be better economically and some are projecting substantial revenue increases – especially those in the aerospace and defense industries, which are poised for growth.

In terms of staffing, we are preparing for the retirement of a couple of key people. To that end, we’ll ensure a smooth transition by career-pathing people up along with bringing in new team members. We spent some time last year looking to bring someone in to join our Sales team. We’ll re-start that search later this month.

Which brings me to my annual prediction. Given that we’re seeing and closing larger deals, and that our clients are optimistic and projecting better times, 2025 should be quite a busy year. We closed 2024 with a portfolio 35% larger than 2023 so I’m hoping to continue to ride those tailwinds. Maybe not such a wild ride as last year, but I’m ready either way.

Wishing you a successful 2025!

Mark Hafner
President & CEO
Celtic Capital Corporation