Consultant Brings Celtic Capital In to Help Rubber Parts Manufacturer Bounce Back
This company is a manufacturer of extruded rubber parts for the railroad, marine, defense and mining industries. It’s located in Oregon.
While the main business was profitable, the affiliate companies (one affiliate owned an airplane the Company used, and another was based in Ohio) lost a significant amount of money last year such that the bank asked the Company out. The owner hired a consultant who told him to sell the airplane, shut down the Ohio affiliate and put the focus back on the main business in Oregon.
There were some challenges:
- The bank was involved in the financing of the airplane. It wanted to be paid off quickly but as part of the airplane’s sale, issues were found during the appraisal process which dragged things out.
- Trade payables were stretched.
- The Company engaged in pre-billing.
As the balance sheet wouldn’t support another bank coming in, the consultant referred the owner to Celtic Capital. Working with the consultant to find solutions to all of the challenges (which included getting the bank to sit back on the airplane, negotiating payment plans for the vendors and instituting a new process to stop pre-billing) Celtic Capital provided the Company with a $3.9MM Accounts Receivable Line of Credit, a $400K Inventory Line of Credit and a $312K Equipment Loan.
Solving the challenges, redirecting the focus back to the core business and Celtic Capital’s financing put the borrower in much better shape. The Company projections look to a much brighter future.
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.