Bibby Financial Services provided an $8 million asset-based credit facility to a global manufacturer of large steel products used by the construction, mining and oil and gas industries.

Because of depressed conditions in mining, one of the manufacturer’s major industry sectors, the U.S.-based subsidiary experienced losses for two years due primarily to lower sales before it brought in new leaders in key positions to help revitalize the business’s plan and structure. Along with other strategic changes to reduce operating costs, the company’s leadership moved to replace its existing restrictive and costly financial facilities with working capital from BFS.

Based on accounts receivable, the facility allows the company to borrow against invoices, which means it no longer requires funding from its parent. It will also enable the client to grow the funding in line with sales; as its sales increase, so does the funding available through the ABL facility.

“Experts are predicting an upturn in the mining industry in the next year or two,” said Ian Watson, BFS CEO of North America. “But with ongoing concerns about potential trade issues and other related factors, many banks and investors will still be reluctant to lend money to companies in the industry. We’re proud to be able to support this company and the manufacturing and mining industries, both of which are so important to the domestic and global economies. ”