The Company
This is a South-Central U.S.–based manufacturer specializing in prescription eyeglass lenses. Optometrist clients send in frames, prescriptions are fulfilled, and completed eyeglasses are shipped back to the providers.
The Situation
The Company carried a small bank line of credit along with a high-cost merchant cash advance (MCA) loan. After experiencing some operating losses, management sought to retire both obligations and secure a more appropriate financing structure; one that would also provide working capital to support its aggressive growth plans.
The Solution
Celtic Capital was referred in to develop a competitive and flexible financing package. The biggest hurdle was obtaining SBA subordination on the Company’s existing EIDL loan. When the original EIDL was issued, the business operated as a corporation; it had since converted to an LLC. The SBA required extensive documentation verifying the change in legal status before considering subordination.
Once the documentation was submitted, Celtic Capital re-filed the subordination request. The SBA approved the subordination request, provided the Company pay down the SBA loan by $75,000. Fortunately, Celtic Capital’s financing structure (totaling $1,266,200 broken out as a $750,000 Accounts Receivable Line of Credit and a $516,200 Equipment Loan) created enough availability for the Company to proceed despite the SBA’s requested paydown.
The Result
This transaction marked the first time Celtic Capital encountered and navigated a paydown request from the SBA. With Celtic Capital’s financing aligned to support expansion beyond the optometrist segment into additional buyer groups, the Company is positioned to double revenue in 2026.
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.