The Company
Founded in 1959, this Pacific Northwest-based moving, storage, warehousing, and transportation business has been a trusted name in logistics for decades. This long-time family-owned business (currently woman-owned) serves regional and national customers with multiple transportation hubs.
The Situation
Despite its strong history, the Company faced financial setbacks in recent years. Losses last year, compounded by further declines this year, triggered bank covenant violations and a forced bank exit. The owner, who was considering selling the business in the near future, needed a flexible financing solution that would:
- Repay the existing bank line of credit.
- Provide reliable working capital to stabilize operations during the sale process.
- Allow for an early exit with no prepayment penalty or termination fees once the business is sold.
The Solution
Celtic Capital stepped in and after reviewing the business’s needs and requests, provided a $1,000,000 Accounts Receivable Line of Credit designed specifically to:
- Repay the bank in full.
- Support ongoing operations with immediate liquidity.
- Accommodate an exit strategy that aligned with the owner’s timeline.
Although the financing process could have been completed quickly, the borrower initially delayed closing, hoping a sale would materialize before the bank exit deadline. The bank granted a 90-day extension, but when no buyer emerged, the owner moved forward, and Celtic Capital closed the deal seamlessly.
The Result
Today, the Company is positioned for a smoother transition. With the Celtic Capital line of credit in place, the owner has the working capital needed to maintain operations while pursuing strategic sale opportunities. Since no full buyer has yet been identified, the owner is exploring a piecemeal sale of the individual hubs and facilities.
Celtic Capital’s asset-based lending solution provided the perfect bridge between the Company’s immediate financing needs and its exit strategy. By eliminating restrictive covenants and penalties, Celtic Capital empowered the owner to focus on running the business and negotiating the sale of the business on her terms.
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.