Gibraltar Business Capital closed on a $4.5 million asset-based line of credit for HT Enterprises, a distributor of fishing supplies.

The Campbellsport, WI-based firm is a niche company that sells everything from fishing tackle, rods and reels to clothing and accessories. Its primary market is ice fishing, making for an exceptionally seasonal sales cycle.

To protect the periodic nature of its sales, the small business needed a smarter form of financing. Given the extreme seasonality of the business and the related working capital and profitability complexities, this deal required a creative loan structure in order to deliver an adequate level of liquidity while maintaining an acceptable risk profile for Gibraltar.

The ABL facility included a non-traditional borrowing base structure and flexible covenant package. A local partner, Hometown Bank, retained the mortgage and term loan facilities.

Chicago-based Gibraltar Business Capital is a privately held middle-market lender providing small- to medium-sized business owners with capital alternatives to a commercial bank loan.