Celtic Capital Wrapped Up a Great Deal for This Packaging & Materials Manufacturer

The Company
This Company is an Indiana-based manufacturer of packaging materials and supplies. The business was established twenty-seven years ago and is still run by the founder.

The Situation
In 2019, the Company’s CFO defrauded the Company causing a need to restate the financials. The new financials showed a bigger loss than expected which impacted bank covenants such that the bank asked the Company out.

The Solution
The Company brought in two business consultants to help get it back on track and to secure new financing. One of the consultants knew our local client development officer and asked Celtic Capital to subordinate the Company’s EIDL and provide a new credit facility.

We handled the EIDL subordination through the SBA’s Birmingham office (known for its difficult subordination process). We then provided a $1,300,000 Accounts Receivable Line of Credit to pay off the bank (which included paying off a small Term Loan) and for working capital.

The Result
In 2020, revenue was up, and losses were down. The Company projected better results this year and in fact, operational changes enacted by the business consultants have already made the Company profitable (as of first quarter).

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.