The Company
Founded in 1990, this Pacific Northwest-based manufacturer has built a strong reputation providing custom design, plastic injection molding, pad printing, and assembly services for clients in a variety of industries.
The Situation
Despite a long track record of success, the Company faced financial challenges. After posting a loss last year and only a slight profit this year, it found itself in violation of banking covenants. These violations triggered a forced bank exit. Not only was the Company looking for a new lender, with its bank line of credit capped at $700,000, the Company was also looking for a larger financing facility to provide the working capital necessary to invest in new opportunities, support customer demand, and prepare for projected growth.
The Solution
One of Celtic Capital’s long-standing referral partners brought the deal to us. The goal was clear: restructure the Company’s financing, pay off the bank, and put in place a facility that would provide both stability and room for growth. Celtic Capital designed a flexible financing package tailored to the Company’s immediate needs and long-term goals. The structure included:
- A $500,000 Accounts Receivable Line of Credit to provide ongoing working capital, ensuring the Company could manage cash flow effectively and meet customer demand.
- A $700,000 Equipment Loan to pay off the bank debt while also expanding availability, giving the Company the liquidity it needed to invest in operations and growth.
This dual-structured solution not only refinanced the bank’s position but also gave the Company additional capital to stabilize its operations and confidently move forward.
The Result
Management anticipates increased sales this year and next, backed by the confidence that its financing partner is aligned with its long-term objectives.
By working with Celtic Capital, the Company has moved beyond restrictive covenants and into a financing structure that supports growth, strengthens cash flow, and funds expansion. With its proven expertise in manufacturing and its financing challenges solved, the Company is now well-positioned to achieve its strategic goals and capture new market opportunities.
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.