Another Case of Fallout From COVID-19
This Company is a California-based powder coating job shop for the automotive and other industries.
In 2020, the Company’s revenue dropped due to COVID-19. Sales stagnated and even though they started coming back in 2021, due to covenant violations, its bank asked the owner to find new financing.
Celtic Capital was called in because the owner was looking for a relationship with less or no covenants and more flexibility to accommodate the Company’s anticipated growth. We provided a $1,250,000 Accounts Receivable Line of Credit and a $250,000 Inventory Line of Credit to replace the bank and for additional working capital.
The Company has been turning the corner in terms of increasing the top line and has made changes to increase profitability. With the new, more flexible Line (not having to manage to covenants), expectations are that the Company will have an easier time meeting its growth objectives.
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.