Iron Horse Credit closed a $3 million stand-alone inventory revolving line of credit to a manufacturer and distributor of agricultural equipment, parts and supplies. A referral partner introduced the client to Iron Horse Credit.
The client is a family-owned business with more than 40 years in the space. After investing in product expansion, the company experienced a decline in sales primarily driven by the sector’s economic decline. The company reduced excess capacity and overhead to increase profitability but was ultimately forced to file for bankruptcy protection by its former lender. After the company exited bankruptcy via debtor-in-possession financing, it engaged Iron Horse Credit to replace its current facility to a more traditional revolving line of credit. Iron Horse Credit’s inventory facility reduced the company’s high interest expense and provided additional working capital to support operations.
“We are happy to have helped this family-owned business through one of their most challenging times in its 40-year history,” Cesar Silva, vice president of business development at Iron Horse Credit, said. “We look forward to a successful partnership and seeing the company succeed.”