TAB Bank provided a wood products distribution company in Arkansas with a $5 million asset-based credit facility. The new facility is extended through a multi-year agreement and will provide for the company’s ongoing working capital needs.
The company is a custom millwork and wood products distribution company, specializing in hardwoods, hinges, slides, adhesives and warehousing, primarily targeting the custom cabinet manufacturing industry.
TAB Bank was able to help the client exit a banking relationship with unusually stringent covenants, which were proving expensive and cumbersome. TAB Bank provided a larger credit facility, higher advance rates on A/R and inventory, and less restrictive covenants – at roughly the same cost.