Turnaround Firm Changes “Gears” for This Job Shop
The Company
In business since 1981, this Company is a job shop manufacturer of large, high-quality metal gears used in various industries (e.g. automotive and aerospace).
The Situation
The Company is family-owned though the family is not active in running the business. With an ineffectual CEO, after two years of sales levels going down and losses going up, in 2023, the CEO was terminated. A well-known turnaround firm was brought in to right the ship. When the Company’s bank elected not to extend its financing, the Company was referred to Celtic Capital.
The Solution
With a bank deadline looming, one of the family members paid off the bank. Celtic Capital provided a $2,500,000 Accounts Receivable Line of Credit and a $1,900,000 Equipment Loan to pay back the family member and meet the Company’s additional needs to settle trade debt and for ongoing working capital.
The Result
With the turnaround firm at the helm, losses are down and trends are all positive. If things continue as planned, this will be a good turnaround story.
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.