The Company
Located in the Eastern Midwest, this Company is a job shop manufacturer of lighting fixtures sold into the construction market for both commercial and residential use. Though around for a while, the Company was acquired by an equity group in 2021.
The Situation
The Company had significant challenges coming out of the COVID era – losses, revenue shortfalls, and in violation of its bank covenants. The bank, a long-time referral partner of ours, referred the Company to us when it asked the Company out.
The Solution
Celtic Capital provided a $1,000,000 Accounts Receivable Line of Credit and that, combined with an additional equity injection from the equity group provided the funds to take the bank out.
The Result
The equity group has made some significant internal changes, including enhancing the management team and developing new sales channels such that the Company expects 2024 to be a better year.
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.