Veritas Financial Partners provided a $6 million senior secured revolving line of credit for New Jersey-based designer and installer of signage, displays and fixtures.
In business since 2010, the company is a custom supplier of store fixtures, kiosks and displays. Customers choose between pre-configured or design unique kiosks tailored to fit a specific setting, design and cost.
The company provides comprehensive services to support retail expansions including design, engineering, manufacturing, project management, shipping & logistics, installations, onsite service/maintenance and graphic design. Manufacturing is outsourced to vendors in the U.S and China.
The company came to Veritas Financial Partners seeking growth working capital and payment guarantees to vendors overseas. During its early years of operation, the company was able to demonstrate stable growth without adding debt by reinvesting their cash flow back into the business. However, when the company’s business growth accelerated it could no longer fund its working capital needs without lender support.
Veritas Financial Partners successfully closed a $5 million senior secured revolving line of credit for the company secured by accounts receivable and inventory. As part of the credit facility, Veritas provided a trade letter of credit of up to $4 million which was used to guarantee payment to its Chinese vendors.
The letter of credit allowed Chinese suppliers to be paid on a COD basis which allowed the company to secure better prices and lower their cost of goods sold. As the company grew, Veritas increased its commitment and funded an additional $1 million for a total aggregate credit facility of $6 million.
Veritas Financial Partners is a national financial services firm that provides senior secured credit facilities to small- and medium-sized businesses.