Republic Business Credit provided a $4.5 million ledgered line of credit facility secured by accounts receivables, inventory and equipment to a Midwest-based manufacturer of outdoor products.
Despite having been in business for more than 30 years, this manufacturer of various wood, tree, garden and plant-based products sought more flexibility from its senior debt lender to better prepare the company for surges in consumer demand. The company was seeking a senior lender that understood the opportunities and risks inherent for seasonal businesses.
The company services large outdoor retailers, regional distributors and mom-and-pop hardware stores throughout the United States. Demand for products shifts regionally, with planting seasons, clean-up seasons and weather having a big impact on cash flow and working capital requirements. The company needed to refinance its existing bank line of credit to support its growth.
The facility from Republic provided working capital and stability during seasonal periods. Republic was introduced to the opportunity from a large commercial bank that wanted to provide treasury management services but was unable to approve a large enough line of credit during the seasonal periods.
“We are well positioned to support manufacturing and other seasonal businesses that need a dynamic working capital partner,” Robert Meyers, president of Republic Business Credit, said. “Our underwriting team worked with the company to structure a growth-orientated facility that amended a facility limit increase shortly after the initial funding.”
“We believe our suite of lending products provides us the ability to truly get to know businesses, whether they are private equity supported or entrepreneurially owned. We are excited to support the growth ambitions of our new manufacturing client,” Stewart Chesters, CEO of Republic Business Credit, said.
