Tech Company Uses LOC as Back-Stop for Cash Flow

The Company

This technology Company is an Oregon-based provider of fully-managed, cloud-based services that allows clients to maximize the value of technology while minimizing risks.

The Situation

While wealthy ownership groups originally invested a significant amount of money in the Company, most of the equity was depleted through losses – not atypical for businesses like this one. The Company was looking for a line of credit to use as a back-stop for cash flow. This was a ‘fresh money’ deal.

The Solution

The deal was referred to Celtic Capital by a friendly competitor on the East Coast that does not operate on the West Coast. The only issue, which led to a drawn-out funding, was that the Company really didn’t need the funds – management was simply looking ahead to future growth. Celtic Capital provided a $2,500,000 Accounts Receivable Line of Credit to pay down some debt and for working capital.

The Result

With Celtic Capital’s line of credit, the Company now has additional funds to help fuel its growth.

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