The Company
Founded more than 25 years ago, this Pacific Northwest-based general contracting company delivers cutting-edge design, engineering, and turnkey solutions in the food processing and agriculture sectors. Known for its innovation and expertise, the Company has grown steadily over the years.
The Situation
This Company was a former Celtic Capital client (from 2019-2022). Since 2022, the business has expanded significantly, but hit a bump in the road earlier this year when some large projects were delayed. This resulted in revenue falling short of projections, creating a cash flow crunch. Despite a healthy backlog and strong balance sheet, the delay put short-term pressure on liquidity; the type of situation that traditional lenders are often less flexible in addressing.
The Company needed quick access to working capital to cover operational expenses and keep current project timelines on track until revenue from the delayed projects began to flow again. Management needed a fast, asset-based financing solution from a lender that understood both their industry and the value of their equipment base. Having successfully worked with Celtic Capital in the past, this borrower reached out to us again for a short-term cash flow solution.
The Solution
Celtic Capital quickly assessed the Company’s collateral position, which included a substantial portfolio of equipment and vehicles. The borrower’s organized records, clearly identifying encumbered versus unencumbered assets, allowed for an efficient underwriting process.
We reviewed over 120 vehicle titles and UCC filings, and structured a $2,285,000 Equipment-Only Loan, which provided immediate working capital financing to bridge the Company’s cash flow gap and keep current projects on schedule.
In tandem, the borrower refinanced its real estate to enhance liquidity. The combined capital enabled management to pay off the bank, stabilize operations, and continue fulfilling project commitments without interruption.
The Result
With the new capital structure in place, the Company regained financial momentum as delayed projects resumed. Revenue is tracking upward, and management expects to be solidly back in the black by the end of the fourth quarter.
Celtic Capital’s responsive asset-based financing allowed the borrower to bridge a temporary cash flow gap, maintain project schedules, and preserve valuable client relationships, reinforcing the role of asset-based lending as a flexible, relationship-driven financing option when timing and liquidity matter most.
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.