Company Puts Equipment Loan on Hold and Returns Two Years Later To Finalize the Deal

The Company
The Company is a Washington-based steel fabricator and installer.

The Situation
A few years ago, a local union tried to unionize the shop but the Company resisted. Following union retaliation, the Company lost business and as a result, became delinquent on its payroll taxes. The Company sued the union who eventually backed away at which time the Company began rebuilding.

Two years ago, the Company’s current lender wanted out. The factor who was going to provide the Company with an accounts receivable (A/R) facility, asked us to come in and provide an equipment loan. We did our due diligence and were ready to fund when the factor backed out of financing the A/R because it couldn’t get the IRS to subordinate. At that point, the deal died.

The Solution
We stayed in loose contact with the Company and as management was so impressed with our original efforts on their behalf, at the end of 2018 we were called back in to provide the equipment loan. The IRS still wouldn’t subordinate but the Company was working with a different lender on the A/R – one that had worked with the IRS on situations like this in the past. The IRS indicated that as long as a payment plan was initiated (through a third party), it wouldn’t file a lien. This lender was comfortable with that arrangement and approved the A/R financing. Celtic Capital then provided the Company with a $300,000 Equipment Loan.

The Result
Our money went directly to the IRS to help pay it down. The Company has been consistently paying the IRS and is steadily building the business back up. It’s turned the corner from its troubled past and with the new financing is once again concentrating on the business at hand.

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