Iron Horse Credit closed a $3 million standalone inventory revolving line of credit to a safety products distributor.
Run by two entrepreneurs with a history in the safety production industry, the company was aligned for a record revenue year for upwards of $60 million and was later acquired by a public company in early 2021. The client needed working capital from a lender that could facilitate its growth. A long-standing referral partner of Iron Horse Credit introduced it to the client.
Due to the company’s growth, it originally opted for high interest rate cash flow loans. Iron Horse Credit replaced the high-interest rate cash flow loans with a more traditional revolving line of credit that will assist the company to grow and provide continual support to its operations.
“It was interesting to get this transaction across the line. As we all know, there are many companies out there taking opportunistic approaches and unfortunately not every company succeeds,” Kristen Palmer, a business development officer at Iron Horse Credit, said. “Twenty years of combined management experience in the sourcing and distribution of safety products, coupled with the backing of its public parent company, provided IHC with the comfort needed to help the client continue to supply safety products to various hospitals, hotels and other large service industry providers. We are happy to participate in the client’s success.”
