Past Client Returns to Celtic Capital to Finance His New Business
The Company
Founded in 2017, this company is a California-based manufacturer of roof and floor trusses for new construction of both single and multi-family homes.
The Situation
The company was new and because of a concentration issue, the owner went to a factor for financing. He found the factor’s paperwork too cumbersome and having been a Celtic Capital borrower with his previous company, once the business was nine to ten months in, had grown a bit such that the concentration issue was resolved, in late 2018, the owner reached out to us.
The Solution
We provided a $3,030,000 credit facility consisting of a $2,500,000 Accounts Receivable Line of Credit, a $250,000 Inventory Line of Credit and a $280,000 Capital Expenditure loan.
The Result
The financing allowed the company to pay off the factor, provides additional working capital and provided the funds required to acquire some much needed new trailers. With quite a bit of new construction going on, the owner expects the company to have a very active 2019 and he’s looking to grow substantially. Through October 2018, the company is on track to meet or even exceed its annual projection.
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.