Two Lenders; One Happy Business Owner
The Company
Located in the Eastern Midwest, this Company is a privately-owned manufacturer of precision components and assemblies. The business was established in 1957.
The Situation
The business struggled in 2023. It fell out of covenant with its bank at which point the bank asked the Company out. The owners were referred to an East Coast lender for Accounts Receivable (A/R) and Inventory financing and to Celtic Capital for Equipment financing.
The A/R and Inventory transaction was fairly sizeable ($6,500,000) so Celtic Capital agreed to participate with the East Coast lender to make the deal structure work for the Borrower and the East Coast lender. Celtic Capital was happy to participate with the East Coast lender as they were well known and respected by Celtic Capital.
The Solution
Of the $6,500,000 A/R and Inventory Lines of Credit, Celtic Capital is participating for $1,500,000. Additionally, Celtic Capital provided a $2,500,000 Equipment Loan bringing our total commitment to $4,000.000. The combination of funds from the two lenders will pay off the bank and provide the Company with working capital.
The Result
This deal is a good example of lenders working together to provide a total package to meet the Company’s needs. With this new financing, the Company is projecting that 2024 will be a good turnaround year for the business.
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.