Republic Business Credit provided a $2 million factoring facility to a West Coast-based small business that supplies parts for the U.S. automotive industry. The financing optimizes the company’s working capital by enabling extended customer payment terms that align with industry standards.
Historically self-funded, the company recently secured a major supply contract with an automotive manufacturer, which will drive rapid expansion across its product lines. In addition, several new product launches are expected in the coming quarters. The company sought a trusted financial partner to support those strategic growth initiatives.
Referred by an industry consultant, Republic provided a $2 million factoring facility to speed up its working capital. Simultaneously, Republic successfully negotiated an intercreditor agreement with the U.S. Small Business Administration (SBA) to ensure all priorities were aligned toward growth.
“Relationships and trust are at the heart of our business,” Eric Dorner, senior vice president, business development at Republic, said. “We had previously funded another transaction referred by this consultant, and we are honored that our industry associate had the confidence in us to support the company’s expansion plans.”
Republic included an accordion facility up to $6 million with the ability to add a $2 million inventory lending facility once the company meets key performance thresholds over the next six months.
“Our role is to support our clients as they pursue ambitious, sustainable growth,” Robert Meyers, president at Republic Business Credit, said. “We are excited to partner with the founders, and we are confident in their long-term trajectory and future success.”
