Lighthouse Financial completed a $5 million revolving line of credit to a Florida-based manufacturer and distributor of steel products.
After being profitable historically, the company incurred losses due to a downturn in the construction industry related to increased interest rates and steel prices which could not be fully passed along to customers. As a result, the company’s existing bank asked it to seek alternative financing. The company has since installed new machinery, allowing it to run multiple shifts, and has returned to profitability and projecting growth. Lighthouse structured a line of credit secured by accounts receivable and inventory that not only paid out the bank but provided significant additional liquidity to support the company’s growth.
