Celtic Capital Provides a “Meaty” Deal to Vegetarian Food Products Distributor

The Company
This is a California-based distributor of dry and frozen vegetarian and vegan food products. It is family owned and operated, and has been in business since 2004.

The Situation

The Company was asked to find alternative financing after its bank was acquired by a larger bank. While marginally profitable, the Company was pushing the limit on leverage and just didn’t quite fit the view of the new bank.

The Company also had a small relationship with a finance company on some real estate.

The Solution

Even though the business was doing okay, the owner wanted to make some changes to improve profitability so he looked for a new lender that would provide a larger credit facility than he had with the bank. That’s where we came in. When the other finance company wouldn’t subordinate, the owner pulled money out of the real estate, paid off that loan and paid down the bank. We then fast-tracked our deal and provided $1,500,000 Accounts Receivable and Inventory Lines of Credit to complete the bank payoff and provide the additional working capital the owner wanted.

The Result

While sales were down the last couple of years, with all of the internal changes, the owner expects significant improvement going forward. The run rate is back on target and the business should quickly get back to where it was a couple of years ago.

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.