Franklin Capital is partnering with Virtas Partners to provide a snack foods company with financing. Franklin Capital seeks partnerships with turnaround firms, banks and other financial professionals to help small and medium-sized businesses.
The 20-year-old snack foods company sells to grocery chains and had been financially healthy, but when the COVID-19 pandemic hit, the company’s management had to shut down production. When management was ready to return to shop, they struggled with working capital. Virtas Partners, a turnaround firm, was brought in to help get the company get back to producing.
The company had large orders with creditworthy customers that it could not complete due to a lack of working capital from the shutdown. Virtas partnered with Franklin Capital to provide the necessary financing.
Franklin Capital’s CEO and chairman met with the company to approve the deal. A bank line was put in place and the bank agreed to subordinate the inventory that Franklin was purchasing, enabling the company to fulfill orders.
“Franklin Capital has proven to be an outstanding partner,” Tim Czmiel, co-founder and managing partner of Virtas Partners, said. “Together, we are helping companies survive this incredibly difficult market and operating environment and emerge stronger than ever.”
Franklin Capital has been helping small to medium-sized businesses meet their cash flow needs for more than 25 years by providing accounts receivable, purchase order, cross-border, and machinery and equipment financing.