Coronavirus-Affected Business Turns to Celtic Capital for Financing
The Company
This Company, based in Colorado, is a distributor and installer of fireplaces for commercial and residential use. The majority owner purchased the Company a little over two years ago.
The Situation
With a small amount of payroll tax debt and no outside financing, the owner looked to Celtic Capital for a credit line to fund the Company’s expected growth. When the coronavirus crisis hit, the belief was that the Company would be shuttered as part of the statewide lockdown. The owner learned, however, that the Company was deemed an essential business in Colorado because it was considered part of the construction industry. As the Company continued to operate, the owner continued to pursue a financing deal with us.
The Solution
Just after the statewide lockdown, Celtic Capital provided the Company with a $600,000 Accounts Receivable Line of Credit to help the business through the crisis and for ongoing working capital. Even with the expected short-term decline in sales, we felt comfortable that the owner was adjusting the Company’s expense structure to not put any undue burden on the Company’s cash flow.
The Result
Sales are trending down, as expected, but collections are coming in as normal. Sales and collections trends are reviewed twice a week and so far, everything is running as anticipated.
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.