Flux Power Holdings, a developer of advanced lithium-ion energy storage solutions for electrification of commercial and industrial equipment, expanded the available credit under its existing facility with Silicon Valley Bank. The amended agreement increases the available capacity of the facility from $8 million to $14 million to support higher working capital requirements related to increased customer demand.

The fourth amendment includes but is not limited to increasing the amount of the revolving line of credit from $8 million to $14 million, removing the liquidity ratio financial covenant of the company, amending the definition of borrowing base (as defined in the fourth amendment), which includes a new defined term for net orderly liquidation value (as defined in the fourth amendment), and removing certain defined liquidity terms.

“We are pleased to have entered into this amended credit facility providing $6.0 million in increased availability on our asset-based lending line, providing the additional cash to fund the inventory and receivables needed to meet our targeted growth goals,” Ron Dutt, CEO of Flux Power, said. “Silicon Valley Bank is a trusted banking advisor that has been part of our continued growth through the years as we’ve scaled our company. The additional availability also provides Flux with a core lending base to meet our anticipated capital resources to fund planned operations to achieve our fiscal 2023 growth and profitability objectives. Having now surpassed our 17th consecutive quarter of year-over-year revenue growth, it is reassuring to have this strong lending relationship to help support our working capital requirements.”

“Silicon Valley Bank is excited to further our support of Flux with this increased capacity under the working capital line of credit. We look forward to Flux’s continued progress in deploying clean, safe, and innovative battery technology solutions,” Jordan Kanis, managing director of climate technology and sustainability at Silicon Valley Bank, said.