The Company
A rapidly emerging snack food distributor based on the West Coast is carving out a strong niche in the North American market. Specializing in a variety of popular snack food products (primarily imported from Mexico), the Company distributes to a growing network of retailers across the United States and Canada; as of now, primarily to Hispanic markets.
The Situation
Founded in April 2025, the Company gained immediate traction. With a knowledgeable team (in this space for many years), combined with an in-demand product mix, consistent month-over-month revenue growth has been generated from the outset.
However, rapid growth, while positive, created a classic operational challenge: the business began to outpace its available working capital while needing to:
- Purchase larger volumes of inventory to meet rising demand.
- Offer competitive payment terms to attract and retain larger customers.
- Maintain strong relationships with key vendors through timely payments.
The Solution
Recognizing the urgency and potential of the opportunity, the Company’s CFO (previously the CFO of a past Celtic Capital client) introduced the Company to Celtic Capital.
Understanding both the industry dynamics and the importance of speed in a high-growth environment, Celtic Capital structured a $600,000 Accounts Receivable Line of Credit tailored to the Company’s needs.
Key advantages of the facility included:
- Immediate access to fresh working capital (no refinancing or debt payoff required).
- Availability is tied directly to receivables, allowing the line to grow alongside sales.
- Flexibility to fund ongoing inventory purchases and operating needs.
- Improved cash flow predictability, enabling better financial planning.
This asset-based lending solution aligned perfectly with the Company’s business model: unlocking liquidity from its receivables without adding unnecessary constraints.
The Result
With access to capital in place, the Company was able to shift from reactive growth to strategic expansion.
The impact was immediate and meaningful:
- Inventory levels increased to support higher sales volume.
- Vendor relationships strengthened through consistent, on-time payments.
- The Company is confident in pursuing larger, more established customers.
- Extended payment terms became a competitive advantage rather than a financial strain.
Most importantly, the financing positioned the Company to sustain and accelerate its growth trajectory without disruption.
Instead of turning away opportunities due to cash limitations, the Company is now equipped to capitalize on them: entering new markets, expanding its customer base, and scaling operations with confidence.
Why It Matters
For fast-growing companies (especially in distribution), access to working capital is often the difference between stalled growth and scalable success. Traditional financing options don’t always move at the pace of business, particularly for newer companies without long operating histories. Celtic Capital specializes in bridging that gap.
A Trusted Partner for Growth
This transaction also highlights the importance of strong referral relationships. The introduction from a former client’s CFO underscores the trust Celtic Capital has built among financial professionals, consultants, and advisors.
For referral sources, it’s a reminder that having a reliable capital partner can:
- Preserve and strengthen client relationships.
- Provide solutions when traditional lenders cannot.
- Help clients navigate high-growth or transitional periods successfully.
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.