Gibraltar Business Capital provided Ditto Sales with a $4 million asset-based loan to help it manage through obstacles facing the business.
Ditto Sales was founded in 1939 as a manufacturer’s representative for furniture hardware and finishing supplies. Later, the company added sales of woodworking machinery and custom fabricated metal furniture parts to the manufacturing mix. Since 1985, the company has also designed, manufactured and sold built-to-order office furniture under the Versteel name, primarily to the education, healthcare, government and corporate markets.
In early 2020, when Ditto faced operational challenges due to the COVID-19 pandemic, the company hired Chicago-based Concord Financial Advisors to help find a creative financing solution with optimal terms. Concord introduced Ditto to Gibraltar Business Capital.
Gibraltar Business Capital initially served as a business advisor to help Ditto Sales understand the new lending environment and what expectations it should have of its lending partners. Ultimately the relationship resulted in Gibraltar providing Ditto with a $4 million line of credit based on accounts receivable and raw material and finished goods inventory.
Gibraltar’s solution involved a flexible approach to setting financial covenants, providing the company a runaway to address industry and pandemic related challenges. Gibraltar also offered advances against working capital assets in line with asset valuations and business liquidity requirements. In addition, despite Ditto being a closely held company, Gibraltar required no personal guarantees.
Gibraltar offers asset-based lines of credit and term loans between $2 million and $20 million to serve mid-market businesses.
