The Company
This Company is a well-established manufacturer of steel products, based in the Pacific Northwest, serving a wide range of industries. It specializes in producing high-quality steel components used in various applications, from construction to manufacturing.
The Situation
As the Company’s bank line of credit approached expiration, the bank declined to renew it due to the Company’s recent financial losses. The bank instructed management to seek a new lender, prompting a referral to Celtic Capital.
The Solution
Accounting issues at the time of Celtic Capital’s audit made it difficult to extract information leading to a longer than usual audit process. Additionally, an SBA EIDL needed to be subordinated. The Company’s internal staff were key to navigating these issues, thus enabling Celtic Capital to provide a $1,000,000 Accounts Receivable Line of Credit, a $250,000 Inventory Line of Credit, and a $482,800 Equipment Loan. This financing package allows the Company to pay off the existing bank debt and provides additional working capital to fund next year’s growth initiatives.
The Result
With a clear strategy to reduce costs and adjust pricing, this new financial foundation gives the Company the flexibility and resources needed to drive growth in the coming year. The Company projects a revenue increase and expects to be much closer to profitability in 2025.
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.