How One Company Handled Dwindling PPP Money
The Company consists of two Washington-based affiliate companies in the environmental and industrial hygiene consulting business. The businesses are ESOP-owned.
Revenue was hit hard due to the fact that consultants couldn’t go out in the field for engagements during the pandemic. Though the business had cash (PPP money), the burn rate was high. The business, looking to re-calibrate and expand, needed a larger credit line but its bank was unable to provide one.
The Chairman, who knew of Celtic Capital from a former position he held with a turnaround and restructuring firm, brought us in to provide new financing. However, with cash in the bank and a CEO and CFO unconvinced they needed asset based financing; management was in no hurry to move forward.
As the cash dwindled and management realized an asset based Line was necessary, Celtic Capital came back to the table and provided a $1,000,000 Accounts Receivable Line of Credit to handle the Company’s anticipated growth.
With its new credit line, now that COVID-19 has been tamed and expenses were lessened during the down time, management expects revenue and profitability to pick up fairly quickly.
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.