The Company
This Pacific Northwest-based company is a leading distributor of lighting fixtures and household hardware serving large-scale residential developers.
The Situation
As part of its growth and expansion strategy, the Company identified a complementary business in a different geographic region to acquire. With SBA loan funding secured for the acquisition itself, leadership turned to securing working capital financing to support operations post-acquisition.
At first, they selected a lender offering slightly more aggressive pricing. But during due diligence, issues arose: the Company’s non-standard billing and invoicing system didn’t fit the lender’s underwriting process. Unwilling to adapt, the lender backed out, putting the acquisition timeline and ongoing operational plans at risk.
The Solution
Celtic Capital was called back in with an urgent request to close the deal quickly. Unlike the previous lender, Celtic Capital had no issue with the Company’s billing practices. We provided a $1,500,000 Accounts Receivable Line of Credit to accommodate the Company’s post-acquisition working capital financing needs and did so under a tight timeframe. We took the deal in early June and successfully funded it on June 30th.
The Result
When all was said and done, the acquisition was completed on time, creating meaningful economies of scale for the Company, expanding its geographic reach, and increasing operational efficiency. With the SBA loan covering the purchase, and Celtic Capital’s financing supporting ongoing operations, the Company is now positioned to grow without interruption.
This case highlights a critical point for growing businesses: the lowest interest rate isn’t always the best option. When a deal is complex, the timeline is tight, or the structure non-traditional, you need a lender that can move fast and flex with your needs. Celtic Capital’s ability to navigate a complex billing system and fund quickly not only saved this deal, it set the stage for the Company’s next chapter of growth.
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.