Equipment-Only Loan Helps This Company Keep Rollin’ Down the River
The Company
The company is a bulk materials producer (sand and other minerals) based in Louisiana. It has a quarry in Missouri and a marine terminal that serves as a base for the barges that take product down the Mississippi River to the Louisiana headquarters; it’s sold from there. The company also provides these transportation logistics – running down the Mississippi to serve the gulf coast – for other companies.
The Situation
This is a relatively new entity; the owners acquired the company assets late in 2017. The A/R is financed by a factor, which, as one of our factoring partners, referred the owners to us to provide an equipment-only loan to facilitate the acquisition of the quarry.
The Solution
As this was a fairly new entity, there was no real history to review. However, the owners had experience with a similar entity in the past and were quite successful. We appraised the equipment and provided a facility of $1,341,600 based on that value which will be used for the real estate (quarry) purchase and to augment cash flow.
The Result
Our equipment loan helped facilitate getting all the pieces in place to potentially make the company a highly-profitable enterprise. In that vein, the owners are expecting to do $15MM in revenue this year.
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.