Daily News: November 28, 2018

Sallyport Provides $1.3MM Facilities to New Client

Sallyport Commercial Finance delivered an $800,000 accounts receivable facility and a $500,000 inventory facility to a family-run manufacturer of baby products.

The company was founded by a medical practitioner with an entrepreneurial mind-set who used their expertise to develop a collection of baby products to help newborn babies and mothers transition from hospital to home.

The management team developed a strong brand with various market verticals, but high demand and lack of sufficient working capital to fuel their growth put undue pressure on the business and their existing lender.

To relieve the pressure and ensure future growth, the management team liked the solution offered by Sallyport.

“Sallyport was engaged by the incumbent lender to exit a customer that was experiencing tremendous growth. The lender was being asked to fully fund the growth but were unwilling to work with the business due to excessive leverage. We were willing to take this chance with a creative sub-line that will help the business fund sales at low margins that will be used for marketing purposes. In addition, there is also an inventory component that allowed us to pay-off the current lender and give the business the additional capital needed for growth and to meet an upcoming payroll,” said James Bartel, vice president of Business Development at Sallyport.

The company plans to use the Sallyport financing to expand the business through larger retailers, direct consumer sales and other direct verticals, allowing it to maximize future sales.