The Company
This Pacific-based company (an employee-owned ESOP since 2012) is a leading third-party logistics (3PL) provider delivering omnichannel fulfillment, warehouse management, and value-added logistics services for premium retail, e-commerce, and wholesale brands. The Company has become a trusted logistics partner for brands that need sophisticated supply chain support.
The Situation
With a rapidly expanding client base, the Company planned to open new fulfillment centers in two additional markets to meet growing demand. However, despite solid operations, the balance sheet didn’t fit traditional banking criteria. Without an existing credit line and facing significant up-front costs for new facilities, staffing, and inventory management systems, management needed a flexible working capital solution that could be deployed quickly.
Recognizing that a conventional bank deal might not be available, the Company turned to Celtic Capital for a tailored financing solution to bridge the gap and support its next phase of growth.
The Solution
After reviewing the Company’s financials and growth strategy, Celtic Capital structured a $2,000,000 Accounts Receivable Line of Credit; a fresh money deal with no existing lender to pay off. The facility was designed to be funded in two major phases, aligned with the timing of each new location’s opening.
Celtic Capital’s asset-based lending solution gave the Company the working capital financing needed to open two new fulfillment centers and scale operations.
This straightforward and strategic financing approach provided:
- Immediate access to working capital for expansion expenses.
- Flexibility to draw funds as new facilities came online.
- Confidence to scale operations without overleveraging.
The Result
With Celtic Capital’s asset-based financing, the Company has the capital needed to open both new facilities and is now positioned for significant year-over-year growth. In leveraging the value of their accounts receivable, the Company turned growth plans into reality, without diluting ownership.
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 more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset-based financing solutions from $500,000 to $8 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 celticcapital.com.