The Company
For over twenty years, this west coast, family-owned business has been providing tree and other vegetation services for both commercial and residential use.
The Situation
In 2023, the Company lost a large customer resulting in a huge drop in revenue. This led to a large loss and a forced bank exit. The family brought in the equivalent of a turnaround professional who determined that the family needed to push down Company debt, most of which was tied to equipment (expensive trucks).
The Solution
The decision was made to cut debt back to the level of equipment needed for the Company’s then current revenue level. It took a few months to sell the excess equipment, the money from which was used to pay down the bank debt.
During that time, Celtic Capital was approached to provide an Equipment-Only Loan to pay the bank off in its entirety and for operating capital. We provided $1,390,000 that enabled the Company to meet those two goals.
The Result
The Company reacted quickly to pay off its debt and right-size the balance sheet for the revenue it had. In going about solving the issue in the right way, cash flow improved, and going forward, the Company is well-positioned to become profitable soon.
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.