Our Equipment-Only Loan Funds Legal Settlements
The Company
Three CNC machine shops related through common ownership. Two are located in Texas; the other, in Michigan.
The Situation
When the three shops were acquired about four years ago, the sale was not done properly which led to losses and lawsuits. There were also a number of liens not satisfied properly when the sale took place. When settlements were finally reached, funds were needed to close out the legal issues.
The Solution
Celtic Capital was asked to do an Equipment-Only Loan as the current lender was exiting the lending business. We provided a $1,500,000 Equipment-Only Loan which funded a shortfall to cover the lawsuits and an EIDL payoff and, we arranged for subordination of two additional EIDL.
The Result
The shops do quite a bit of work for the aerospace industry. That combined with some recent new business they’ve landed is leading to expectations of a dramatic increase 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.