Daily News: June 27, 2013

Veritas Provides $6MM to Fixtures Designer

Veritas Financial Partners provided a $6 million senior secured revolving line of credit for a New Jersey-based designer and installer of signage, displays and fixtures.

In business since 2010, the company is a custom supplier of store fixtures, kiosks and displays. Customers choose between pre-configured or design unique kiosks tailored to fit a specific setting, design and cost. The company provides comprehensive services to support retail expansions including design, engineering, manufacturing, project management, shipping & logistics, installations, onsite service/maintenance and graphic design. Manufacturing is outsourced to vendors in the U.S. and China.

Veritas closed a $5 million senior secured revolving line of credit for the company secured by accounts receivable and inventory. As part of the credit facility, VFP provided a trade letter of credit of up to $4 million which was used to guarantee payment to its Chinese vendors. The letter of credit allowed Chinese suppliers to be paid on a COD basis which allowed the company to secure better prices and lower their cost of goods sold. As the company grew, Veritas increased its commitment and funded an additional $1 million for a total aggregate credit facility of $6 million.