First Capital Provides $6 Million to Baked Goods Producer
First Capital announced that it has provided a $6 million asset-based lending facility to a producer and distributor of frozen pies and baked goods located in southern California. The credit facility is collateralized by the company’s accounts receivable and inventory.
First Capital was selected as the working capital partner based on its ability to structure a flexible financing package that would provide for current working capital needs as well as added availability for future growth. The company was completing its turnaround and needed a financing solution that provided sufficient working capital to refinance its bank line and support peak seasonal borrowing periods.
“We were able to win a highly competitive process by digging deep to understand the business, including non-recurring events that caused prior losses and seasonal working capital needs,” said Mark Orlando, vice president and BDO. “First Capital was able to structure a financing solution that provided additional liquidity for the company to complete its turnaround and support future growth. We forged a strong relationship with the management team and look forward to a long financing partnership together.”
This transaction was sourced by Orlando and will be serviced by First Capital’s Western region located in Los Angeles, and managed by ABL Western region manager Matthew Grimes.
First Capital provides working capital financing ranging from $2 million to $25 million primarily to growing and middle-market businesses with annual sales ranging from $10 million to $250 million.