The Company
This Eastern Midwest job shop specializes in the manufacturing of high-quality electronic assemblies for a diverse customer base located primarily in the general region.
The Situation
The Company needed to secure financing in order to address several outstanding financial obligations. Specifically, it needed to repay a small bank line of credit as well as some additional subordinated junior capital. The timeline for paying off the bank line was tight, and the company required a flexible financial solution that would enable it to both settle these obligations and continue operations without disruption.
The Solution
Celtic Capital provided a $2,500,000 Accounts Receivable Line of Credit and by leveraging up with additional collateral (taking a first position lien on the building) also provided a $500,000 Inventory Line of Credit. This financing package gave the owners the funds they wanted to meet the Company’s objectives and for ongoing working capital.
The Result
The owners now have the financial stability needed to focus on their long-term business goals. The Company’s prospects for the future are looking quite promising.
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.