The Company
Established in 1978, this privately held manufacturing company is headquartered in the Eastern Midwest. Operating from a centralized facility, the parent company and its five subsidiaries specialize in the production of high-strength U-bolts, threaded rods, and a range of custom steel components.
The Situation
In 2024, this steel components manufacturer faced unexpected headwinds, which led to a revenue decline and operating losses. These financial setbacks triggered violations of its bank lending covenants. Despite a long-standing relationship, the bank opted to exit the credit facility, creating the need for a new working capital financing solution.
The Solution
Celtic Capital was introduced to the Company during its lender search process. Among a competitive field, it was Celtic Capital’s understanding of, and ability to work with, multi-entity corporate structures that ultimately won over the Company’s ownership and CFO. Celtic Capital provided a $3,500,000 Accounts Receivable Line of Credit to retire the bank debt in full and inject additional working capital into the business.
The Result
Now operating with a more flexible and responsive financing partner, this steel component manufacturer is on a path to recovery. As of mid-2025, revenues are rising, margins are improving, and operational losses are narrowing. This tailored accounts receivable financing solution addressed the Company’s short-term cash flow needs while supporting long-term financial recovery.
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.