When the Chips Were Down, Former Client Came Back to Celtic Capital for Help Financing Its New Business
The Company
This company is a California-based manufacturer of specialty fiber optic products and is a former client that has come back to us for help financing a new business.
The Situation
We financed the original acquisition of this company and the deal stayed with us for just over one year. The company did well, paid us off and went on to bank financing. Recently, the owner acquired another company and set up a holding company integrating both businesses. The bank was paid off and the owner self-financed the acquisition but now he needed money for working capital.
The Solution
We provided $2,350,000 – a $1,500,000 Accounts Receivable Line of Credit and an $825,000 Equipment Loan to support the cash flow of the business as management readied the company for a new product launch.
The Result
The company has always done well. With this acquisition, the owner decided to switch the sales channel and use distributors that sell directly to customers. Before, the company had a different sales model, one farther removed from customers. We have confidence in this new strategy and if history is any indicator, we believe this company will probably stay with us with for about one year and then move, once again, on to a bank.
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.