Republic Business Credit extended a $6.5 million asset-based loan to a Gulf Cost-based, second-generation food manufacturing company that needed more support during seasonal growth periods.
The food manufacturing company provides food, packaging and distribution services to grocery stores, schools, hospitals and commercial customers located throughout the Gulf Coast region. As the company sought additional support, its commercial banker pursued a partner for a line of credit that would allow the referring banker to maintain treasury management.
“We supply wholesale restaurant equipment and other products to our growing customer base, and their needs can ebb and flow depending on the season,” the president of the food manufacturing company said. “It was important to us to find a confident bank relationship. Republic stepped up and partnered with us in areas where we needed flexibility.”
The facility from Republic Business Credit provided for a seasonal uplift and more availability during the ramp up and low season periods. Not only was Republic Business Credit able to provide the ABL, but the referred commercial bank retained all of treasury services and the customer.
“We truly enjoy partnering with entrepreneurial businesses that have strong foundational community support and provide an important service,” Robert Meyers, president of Republic Business Credit, said. “Republic is proud to support the food manufacturing company today and in the future as acquisition opportunities present themselves and funding needs grow toward $20 million.”
“This company provides food and products to a vital industry throughout the Gulf Coast that includes schools in the region, ensuring kids are protected against food insecurity,” Leigh Guglielmo, senior vice president of Republic Business Credit, said.
Republic Business Credit has other food industry clients that work in the confectionary, snack, condiment, sauce, ingredient, grain, bakery, desserts, cakes, canned, smoked, frozen and dried industries. In addition, its beverage clients include companies that provide soft drinks, juices, coffee, tea and other instant beverages. In 2022, Republic Business Credit was a sponsor of the Houston Food Bank.
“Our unique lending products provide us the ability to truly get to know the businesses with whom we partner, whether they are private equity supported or entrepreneurially owned,” Stewart Chesters, CEO of Republic Business Credit, said. “We’re excited to support the growth ambitions of our new and lasting clients.”
