First Capital announced that it has provided a $5 million asset-based senior credit facility to a service provider specializing in commercial laundry for restaurants, hospitals and entertainment venues. The senior credit facility consists of a $3.5 million working capital revolver collateralized by accounts receivable and inventory and a term loan in the amount of $1.5 million.

First Capital was selected as the working capital partner based on its ability to create a financing solution that would be able to support sales growth and also provide working capital on equipment due to the company’s equipment-intensive industry. The two-year-old startup company had been experiencing rapid growth and was not able to obtain financing through a traditional lender due to a short sales history.

“As a privately owned non-bank provider of capital we have more flexibility in structuring packages and while the company had an excellent equity base, shallow sales history restricted traditional financing,” remarked John Nooney, MidSouth region manager for First Capital. “Our team worked with the company’s management to understand their growth strategy as well as sales projections for the next few years. The management team has great experience in this industry and is off to great start that will lead into a successful business venture.”

This transaction was referred to Matt Simon and will be serviced by First Capital’s MidSouth region, managed by Nooney and located in Atlanta.

First Capital provides working capital financing ranging from $2 million to $15 million primarily to small- and middle-market business owners with annual sales ranging from $10 million to $250 million.