In 2024, lending to companies focused on rapid expansion reflected an increasingly customized and sector-specific approach. Flexible credit structures like revolving credit facilities, unitranche loans and asset-based lending played a pivotal role, offering businesses the liquidity needed to scale operations and pursue strategic growth. Non-bank lenders expanded their footprint, providing creative financing solutions tailored to industries such as logistics, healthcare, technology and consumer goods. Refinancing existing debt remained a common theme, optimizing capital structures and enabling long-term growth strategies. ESG factors and technological innovation also shaped lending decisions, aligning financing with sustainability goals and market advancements. Despite macroeconomic challenges, lenders demonstrated adaptability, ensuring businesses had access to the capital necessary to achieve their growth ambitions.
Deal Spotlight: Ares Commercial Finance
- Category: Expansion
- Lender: Ares Commercial Finance
- Deal Size: $13.5MM
- Borrower: Oats Overnight
Ares Commercial Finance Delivers $13.5MM Asset-Based Revolver to Oats Overnight
Ares Commercial Finance provided a $13.5 million asset-based revolver to Oats Overnight. Founded in 2016 in Tempe, AZ, Oats Overnight provides a fast-growing, high protein oatmeal.
Through the Oats Overnight brands, the company manufactures and sells high protein oatmeal products in a variety of flavors, with each containing a unique blend of high-quality oats, premium protein sources and a variety of add-ins.
With all manufacturing and distribution done in-house, the Oats Overnight team plays an integral role in crafting every product bearing the company’s name, while also persistently eliciting feedback from their active subscriber (and most loyal) customer base.
To assist with significant growth in revenue, brand awareness and product variety, Ares Commercial Finance provided an asset-based loan collateralized by the company’s accounts receivable, inventory, machinery and equipment, and intellectual property.
Proceeds of the financing were used to retire the existing debt, capex spend and for ongoing working capital support. Along with the asset-based revolver, Ares Commercial Finance participated in the company’s $35 million Series B equity raise.
