Republic Business Credit extended a $3.5 million asset-based loan revolver, with an additional $500,000 equipment term loan, to an Oregan-based, private equity-owned metal injection molding company seeking a new partner to replace its bank line of credit.
The company has been profitable for years, but with a heavily export-based model, it was vulnerable to shifts in the market and changes in major buyers’ needs. It was also in search of a new lender that could better meet its credit facility and international market share.
Republic Business Credit closed this agreement with the client within just six weeks of an executed letter of intent. The company was able to return to profitability and is projected to continue growing profitability over the next 12 months.
“This is an excellent example of how asset-based loans can help a historically stable company regain its footing after an unexpected disruption,” Brian Daray, senior vice president and underwriting manager at Republic Business Credit, said. “We are thrilled to have helped this industry-leading company reach their goals quickly and efficiently.”
Republic Business Credit was also suited to meet the company’s needs on international receivables and provide availability and covenants.
“As an asset-based lender, we are able to be nimble to meet the needs of our clients and help them find a solution that works best for their business,” Robert Meyers, president of Republic Business Credit, said. “We are proud to have helped this company recover and set new goals for its future.”
