ADDvantage Technologies Group renegotiated its lines of credit for its telecommunication and wireless business segments, increasing total borrowing capacity and better positioning the company for anticipated and accelerating growth for both 5G and telco.
ADDvantage converted its collateralized line of credit for its telecommunications segment into a factoring line, similar to its wireless business’ factoring line, all with Vast Bank. As a result:
- The company will be able to borrow up to $9 million against Nave receivables and $1.5 million against Triton receivables, replacing its existing line of credit, which will be paid off.
- The company’s existing Fulton factoring line was restructured, modestly reducing borrowing capacity but on more favorable terms related to customer diversity.
- The net impact will be an overall borrowing capacity increase from $16 million to $19 million.
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“Our lenders at Vast Bank continue to express confidence in our business, working with us to establish credit facilities that provide us maximum flexibility as we encounter more rapid growth,” Joe Hart, CEO of ADDvantage Technologies Group, said.
