Business Capital has secured a combination $1.5 million credit facility for a company providing highly specialized components to the electronics industry. The new credit facility will serve to fund the company’s plans to increase purchasing of raw materials and manufacturing and distribution of product.

The 50-year old company is a design to manufacture (OEM) industry provider delivering world-class micro-components. It has a large customer and manufacturing base in the United States and overseas and is known worldwide as an innovative and reliable supplier of highly engineered hardware for operational and advanced military systems. It manufactures critical microwave electronic components, sub-assemblies and integrated sub-systems for the military electronics defense, aerospace and telecom industries.

Due to a rapid increase in sales and higher operating expense, the company lacked the liquidity to purchase the additional raw materials needed to manufacture and distribute increased product to meet demand. A long production cycle put further strain on the company’s ability to fill outstanding orders without additional working capital to fund the backlog.

“Our mandate was simple: secure intelligently structured, cost effective capital quickly to allow our client to take advantage of new business opportunities and expand their domestic and international presence, ” said Chuck Doyle, managing director of Business Capital. “It was a pleasure working with our client’s management team and founder in assessing the company’s strategic plan and consummating a transaction that aligns their capital structure with current growth opportunities. Our client was making a comeback from obstacles presented by the recession and was unable to attract affordable financing, primarily due to a period of decreased revenue during the economic slowdown and some outstanding debt overhang. They were experiencing increased demand and had aggressive plans to further grow sales. We were able to clearly present their financial situation and projected return to profitability within the year. We selected a lending partner who we felt would understand their business and meet their particular needs. The result was a financing package for our client designed specifically to meet their plans for growth.”

Business Capital is a national commercial finance and debt restructuring firm that specializes in business loans for small- to middle-market companies