Flatbay Capital provided a $3.9 million sale leaseback loan to IBC Advanced Alloys to pay off its remaining loan to Sallyport and to provide extra cash to finance working capital.
In 2023, IBC experienced a decrease in profit margins due to metal costs and existing customer contracts. Along with the increase in supply cost, the company needed to free up working capital to solve its inventory needs relating to its manufacturing backlog. With prior year losses and continued margin decrease in 2024, the alloy manufacturer was deemed unbankable to the finance sector, so the company turned to Flatbay Capital.
“We gave them various options relating to their commercial real estate and the client decided on our Sale Leaseback product,” Steve Hanson, business development officer and partner of Flatbay Capital, said.
