WA-Based Steel Fabricator Makes Equipment-Only Deal With Celtic Capital
This is a Washington-based steel fabrication and installation company. It does design and construction of canopies and fasciae for corporate clients.
The Company had a bank line of credit that it paid off through cash flow. The owner wanted an added cushion of working capital but as the Company’s former CFO had not been posting correctly and the financials, once re-stated, showed losses, getting capital from a bank was not an option. And as the Company had progress billing, an accounts receivable credit line was also not an option.
The Company had unencumbered machinery and equipment. It also had an EIDL. The equity sponsor, aware of Celtic Capital’s Equipment-Only Loan Program and of our experience and expertise in EIDL subordinations, contacted us. Celtic Capital successfully subordinated the EIDL and then provided a $460,500 Equipment Loan that solved the Company’s cash needs.
The additional working capital was needed to fuel the Company’s expected growth. So far in 2022, the Company is on track to reach its growth goals.
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.