First Capital Closes A/R Facility to Chemical Manufacturer
First Capital provided a $13 million accounts receivable purchase facility to the US subsidiary of a global manufacturer of specialty chemicals. The facility is in the form of a non-notification factoring agreement and is collateralized by a dedicated pool of the client’s accounts receivable.
First Capital was referred to the company by a European-based finance company because of First Capital’s ability to quickly develop a structure for the client’s U.S.-based accounts receivable that complimented the European-based facility. The facility provided the client with liquidity to fund strategic initiatives.
“The company required a unique financing and creative structure that would provide liquidity under a True Sale arrangement,” remarked Kevin McGarry, EVP and national factoring division manager. “We worked collaboratively with a European based lender to seamlessly provide a global solution for the client to support of their strategic objectives.”
First Capital provides working capital financing ranging from $2 million to $25 million primarily to small- and middle-market business owners with annual sales ranging from $10 million to $250 million. Credit facilities are in the form of factoring and asset-based lines of credit.