Pinnacle Capital Finance provided a $4.5 million line of credit to a San Francisco Bay Area design, manufacturer and distributor of indoor and outdoor modern furniture.
The company supplies state of the art furniture and lighting to retail, restaurant, hospitality, rental and design companies located in the U.S., Canada and some South American countries.
The company had successfully grown its business enjoying double digit growth and profits in most years. However, due to the new tariffs imposed by the U.S. on imports from its outsourced Chinese vendors along with a strategic product diversification plan put a strain on the company’s balance sheet. Their existing lender was unwilling to continue the relationship.
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The PCF loan was structured as a $4.5 million line of credit including an accounts receivable and inventory revolving line of credit as well as a term loan.
“We were impressed by the management team being so forthcoming of their strategic mistakes as well as by their comprehensive turnaround plan, which was instituted in short order,” said Kevin O’Hare, president of the Pinnacle Capital Finance group.
