A Working Capital Solution for Two Affiliated Companies

The Company
This deal consists of two affiliated companies, both based in California, that manufacture corrugated boxes and display panels. Both companies have been in business for over thirty years.

The Situation
These affiliated companies were purchased separately by a gentleman, experienced in the industry, at the end of 2018 and the beginning of 2019. He financed the purchases with short term unsecured loans from family and friends. He then went to look for outside financing and took a small line of credit from a bank.

Having heard of Celtic Capital before, and our ability to creatively structure credit, the owner reached out to us for a larger line of credit. He needed more consistent working capital and he also wanted to pay back most of the purchase financing.

The Solution
We pulled together the accounts receivable from both companies and created a $750,000 Accounts Receivable Line of Credit that worked for both affiliates.

The Result
The unsecured debt has been repaid and our larger credit facility has provided the working capital this owner needed to make some necessary operational changes. The business is now well-positioned to meet its goals and is expected to be profitable soon.

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.