Republic Business Credit provided a $6.75 million factoring legered line of credit facility to a women and minority-owned government contractor. The facility also includes an accordion that can expand the total funding to $10 million.
When the women and minority-owned government contractor secured an additional multi-year contract with the U.S. Department of Defense, the company sought a funding partner that could keep pace with its rapidly expanding needs. The company’s small business investment corporation mezzanine finance allowed it to refinance its limited ABL loan. Republic was able to help the company refinance that loan while effectively meeting the increased demand of the new contract.
The government distributor designs, fabricates and distributes tool kits. It primarily provides its products to federal government agencies, with a focus on the various purchasing offices within the Department of Defense. The company also provides custom fabrication services to some commercial customers located throughout the southeast region.
Republic structured a $6.75 million factoring line of credit that provided availability on all of the company’s government and commercial accounts receivables, including an accordion up to $10 million. Shortly after extending the funding, Republic added a supplemental $250,000 mobilization facility, which can make the difference for women and minority-owned companies that need to quickly increase production to fulfill a large government contract. The mobilization advance helps accelerate the creation of cashflows because, during periods of growth, profits often lag behind as companies scale quickly.
“We are proud to partner with women- and minority-owned entrepreneurial businesses that have strong, foundational community support and are looking for the right partner to get to the next level and achieve incredible success,” Robert Meyers, president of Republic, said.
“This company provides essential products to the Department of Defense and is a key local supplier in the southeast region that supports our national defense mission across the world,” Leigh Guglielmo, senior vice president of Republic.
“We are incredibly proud of our armed services, and it is an honor to support entrepreneurs that align with our women, minority- and veteran-owned government contractor partnerships,” Meyers said.
“Our unique lending products provide us the ability to truly get to know the businesses with whom we partner, and we are especially proud when we can support diverse, women- and minority-owned companies that reflect our own team,” Stewart Chesters, CEO of Republic, said. “We won the Secured Finance Networks Alignment Award for our performance across Diversity, Equity and Inclusion. It’s great when we can provide that same support across these valuable, thriving communities.”
