Business Capital Arranges Credit Facility for Seafood Company
Business Capital (BIZCAP) has arranged a $750,000 senior secured credit facility for a supplier of fresh and frozen seafood products based in California. The new credit facility will provide working capital to support the firm’s ongoing growth.
The family-owned company was founded in the early 1980s. It operated a fleet of vessels and processing facility as well as ran a wholesale and distribution business for domestic and international sourced seafood products. The company supplied a wide variety of rare, fresh and frozen seafood that was shipped and delivered to both local buyers and customers all over the world, including Europe, Asia and Australia.
The company was bought out by a larger food conglomerate and, shortly thereafter, the buyer agreed to spin-off and sell the distribution business segment back to the founder of the business. Following the purchase of the business, the company was unable to secure a line of credit. Business Capital worked closely with the company’s owners and management to develop an understanding of the industry, the financing requirements and the company’s projected path towards profitability. By articulating the expertise and industry knowledge of the owners and their capability to generate sales and near term profits, Business Capital was able to successfully present the business as a sound candidate for a line of credit to its lending partners. Business Capital successfully delivered an optimal financing solution that will enable the client to maximize the liquidity locked-in its working capital that will enable the owners to fund future growth plans.
“This was a fun and rewarding deal to accomplish,” said Chuck Doyle, managing director of Business Capital. “Our client had faced a setback after a buyout situation and wanted to move forward in a different direction. They had been unable to get the funding they needed to fulfill their vision. Even though the seafood trade is one of the world’s largest and fastest growing international commodity industries, it is a delicate market niche and so it was critical for them to work with a lender who would understand and take into account their unique circumstances, needs and capabilities. We have extensive experience in both food and distribution industries, and have worked with many clients in the seafood business specifically. We were able to deliver an intelligently structured solution and affordable financing to help the client achieve their future vision and growth potential.”
Business Capital is a commercial finance company and debt restructuring firm that specializes in business loans for small to middle-market companies.