Commercial Finance Partners (CFP), a debt advisory and direct lending platform, closed a $5.65 million two-tranche capital solution for a Rocky Mountain-based specialty thermoforming plastics company.
The client needed to take out an existing bank facility while securing growth working capital to support the cyclical demands of its business. The structure required a term loan for hard assets and a revolving line of credit for accounts receivable and inventory.
CFP structured the transaction in two tranches: a $4 million asset-based line of credit collateralized by accounts receivable and inventory, providing flexible working capital, and a $1.65 million SBA term loan utilizing the company’s equipment and other hard assets. The result is a capital structure purpose-built for the company’s operating cycle, delivering both the liquidity and flexibility needed to continue scaling.
“This was a deal that required coordination across multiple capital sources and a structure that matched how this business actually operates,” Jeff Cosgrove, senior vice president at CFP, said. “The thermoforming industry has real cyclicality to it, and the client needed a capital partner that understood that. We were able to build a solution that handles the working capital swings while keeping the term debt aligned with the hard asset base.”
