Lighthouse Financial provided a $2.821 million credit facility to a New Jersey-based manufacturer of hair care products. The financing consisted of a $2.5 million revolving line of credit and a $321,000 term loan.

The credit facility was designed to refinance an existing line of credit and term loan with another commercial finance provider. Lighthouse was able to combine the collateral base of the company with that of an affiliated company to structure an aggressive facility on accounts receivable, inventory and machinery and equipment that paid out the existing lender completely and provided significant additional working capital.

“After our commercial finance lender was acquired by a larger firm, we were no longer a fit. However, our backlog was growing, and we needed additional working capital to fill orders,” Lighthouse CEO Bill Covey, Jr., said. “Lighthouse took an extremely proactive approach to our deal and even added the collateral from an affiliated company to our borrowing base. This dramatically improved our cash position and allowed us to get back to work.”

Lighthouse Financial is a commercial finance company that provides accounts receivable, inventory and equipment financing to small and mid-sized businesses with loans between $500,000 and $5 million.