Another ABL Turns to Us to Tackle the Equipment Piece of a Tough Deal

The Company
This is a Washington-based manufacturer of roof and floor trusses, pre-cut lumber framing packages, and door and millwork packages.

The Situation
The deal was first referred to us in the middle of 2018. Another asset based lender was financing the accounts receivable (A/R) and inventory, and we were asked to provide an equipment loan. The goal was to take out the existing lender (a bank) who had asked the client out when it went out of covenant.

With the books and records not in the best of shape and problems with availability and the A/R aging, the other asset based lender decided not to move forward with the deal.

The Solution
An outside consultant was brought in to help the Company make changes and when those changes were completed in early 2019, the lead asset based lender came back in to finance the A/R and inventory. That lender negotiated with the bank to take the Company out in two steps – the A/R and inventory first; our equipment loan to follow. The bank agreed and when ready, we took the bank out of the equipment debt.

The Result
Tackling the issues alongside the consultant and the other asset-based lender, while the equipment didn’t originally appraise as hoped, we made it work and provided a $1,157,000 Equipment Loan. This refinancing gave the Company the working capital necessary to continue its turnaround plan.

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, or visit us at