Republic Business Credit provided a $3.5 million ledgered line of credit and a $250,000 unbilled receivables facility to QX Logistix to help the cashflow gap between work being completed and the end customer accepting the invoices. In unison with Republic Business Credit, Change Capital, a capital solutions provider, supplied a $750,000 subordinated debt facility along with a third party which provided a $500,000 equipment term loan to provide additional liquidity.
“During a time when lenders are needed most to help the small business community, we chose a partner in Republic and Robert Meyers that shared our ideals, values and commitment to the industry,” Raffi Azadian, CEO of both Change Capital and the Azadian Group, said.
Republic Business Credit was brought in by the Azadian Group, a private equity investor, which acquired QX Logisitx in 2019 and was in the process of restructuring the balance sheet of the company. Azadian knew several members of the team at Republic Business Credit, including Robert Meyers, president, and William Kemp, vice president of business development.
“It was great to work with Raffi and the teams at the Azadian Group and Change Capital again,” Meyers said. “Having known Raffi for over 15 years now, it is always a pleasure to work with someone we like, respect and have the upmost confidence they will be successful.”
QX Logistix, based in Vernon, CA, provides transportation, warehousing, ecommerce fulfillment and pool distribution along with several consolidation and deconsolidation services. The company services the consumer packaged goods industry, including electronics, apparel, furniture and warehousing for several online retailers.
“The partnership between the Azadian Group and the Republic Business Credit team was like watching a musical symphony; they understood our needs and provided a dynamic, combined growth facility that will set us up for long-term success,” Chris Carey, CEO of QX Logistix, said. “The logistics and warehousing industry has been through disruption before with the LA Port strike and earthquakes. I am confident that, with partners like these, we are well-positioned to confront any challenges ahead.”
“The QX Logistix story is just beginning,” Azadian said. “We are excited to be able to support Chris and the team through both the equity and junior debt side to keep up with demand.”
