Lighthouse Financial completed a $4.5 million credit facility for an Ohio-based distributor of lighting products.
The company experienced rising freight costs during the COVID-19 pandemic leading to increased costs of inventory and losses. As the company worked through the higher cost inventory and replaced it with lower cost goods, its margins improved and profitability returned in 2023. However, the company was in need of a new financing partner. Lighthouse Financial structured a line of credit secured by accounts receivable and inventory that paid out the company’s existing lender and provided additional liquidity.
