4th Quarter Project Delays Turned “Ho, Ho, Ho” Into “Oh No, No No!” For This Idaho-Based Company

The Company
This Idaho-based company designs and manufactures parts for food processing plants and designs and builds structures of primarily steel buildings.

The Situation
Project delays in 2019 pushed some projects into 2020. As a result, the business suffered a decline in revenue which left it in a cash flow bind. The Company needed capital for operating cash flow and to clean up vendor obligations.

The Solution
With no bank relationship or other financing arrangement, the Company came to Celtic Capital for help. Accounts receivable financing was not an option as the Company did progressive billing; however, the equipment, owned by the holding company appraised well and we provided a $1,050,000 Equipment-Only Loan.

The Result
Projections are strong for 2020. With cash flow and vendor obligations under control, the projects pushed over from 2019 are moving along. And, management is expecting to win some new projects that will further increase revenue.

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.