Republic Business Credit provided a $5 million ledgered line of credit facility with a $500,000 purchase order call facility to a Gulf Coast region-based food service company.
When the company sought more funding than its incumbent bank lender could provide, it fed Republic Business Credit the order for growth orientated working capital. Republic approved a non-dilutive and adaptable facility that provided availability on the company’s account receivables and purchase orders. The food service company wanted to accelerate its ability to buy grocery inventories and paper products and hire staff to keep up with growing demand across the public school systems.
The food service company provides breakfast, lunch, snacks, dinner and drinks to school districts across the Gulf Coast region. The company primarily sells directly to the school districts. The company has exceeded its sales forecast during the COVID-19 pandemic as students needed additional essential services whether they were in school or not. The company supplies meals throughout the year.
Republic’s funding will enable the company to buy more bulk inventory, hire additional staff and increase the number of school districts it can support each school year. Republic structured the ledgered factoring facility to allow for growth without any financial covenants or field exam requirements. The food service company expects a strong close to 2021 and plans to request an inventory and equipment term loan facility as it continues to build the company.
“We believe our factoring, ABL and inventory lending products are great supplements to the vision of our growing portfolio of food brands.” Robert Meyers, president of Republic Business Credit, said. “We are excited to help enable our entrepreneurs to focus on adding revenue while knowing they have a supportive partner to weather any supply chain or growth issues they might encounter during the pandemic.”
“The food supply chain is critical to everyone’s well-being. We are excited to help so many food companies as they lead us into healthy food alternatives,” Stewart Chesters, CEO of Republic Business Credit, said.
