Sometimes It Pays to Pay Off an Unsatisfactory Lender

The Company
The company is a Southern California-based plastic injection molding company. It’s a family-owned business started by the father (deceased) and now run by his daughters and son-in-law.

The Situation
The company was financed by an ABL group within a bank in Northern California. The owners wanted a new lender because they felt the bank was inflexible and took a hard line approach on everything which was very frustrating. They were concerned about how to exit the bank as the termination language in their agreement was “unusual.” The owners didn’t quite know what to do until they began a conversation with Celtic Capital.

The Solution
Our President and CEO, Mark Hafner, went and met with the company owners. Mark found the building to be immaculate which told him a lot about the business. Typically, if owners believe in running a tight ship in the warehouse, the books are in good order too, as was the case here. Celtic Capital performed due diligence and Mark reviewed the company’s lending agreement to determine how best to take the company out of the bank. Mark worked with the owners to come to a practical solution and we provided the owners with a $2,500,000 facility consisting of a $2,000,000 Accounts Receivable Line of Credit and a $500,000 Inventory Line of Credit.

The Result
Celtic Capital’s credit facility enabled the company’s owners to get out from under a lending relationship with which they were extremely unsatisfied and was negatively affecting how they ran the business. With our flexibility and willingness to work with the owners, the owners are in a much better place both emotionally and with respect to how well the business is doing.

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, or visit us at