eCapital, a tech-enabled specialty finance provider for small and medium-sized businesses across North America and the United Kingdom, delivered a $17.5 million asset-based lending facility. The facility advances against both accounts receivable and inventory to support the working capital needs of a multigenerational consumer products distributor in the arts and crafts sector, headquartered in the Midwest.
The company’s broad supplier network, inventory-intensive operating model and continually expanding product catalogue required a financing structure capable of providing the liquidity needed to support seasonal demand, fund inventory and enable ongoing new product introductions.
Referred to eCapital by the company’s financial advisor, the business sought to replace a more restrictive bank structure that no longer aligned with its operating model or growth profile. eCapital structured a flexible facility that increased availability through higher advance rates on accounts receivable and inventory, accommodated certain operational ineligibles and allowed for cash interest on subordinated debt, while executing efficiently to ensure continuity across supply and fulfillment operations.
“eCapital works with businesses across consumer and distribution-driven industries that require customized capital structures to support complex operating models,” Brian Cuttic, executive vice president, asset-based lending at eCapital, said. “Our focus is on delivering solutions that align with how these companies operate and where they are in their growth cycle.”
Michael Conrad, senior vice president, business development officer at eCapital, added, “From the outset, it was clear this was a highly disciplined operator with a deep understanding of its inventory, customers and supply chain. Partnering closely with the management team, our goal was to ensure the business had the liquidity it needed to run confidently and without interruption.”
