Republic Business Credit partnered with an investment bank to provide a ledgered receivables line of credit to a natural foods manufacturer.
Republic partnered with a national investment banking firm that was hired by the client and its sponsor to obtain a line of credit. The client chose a ledgered receivables line instead of a traditional asset based loan.
The company manufacturers a natural whole grain with applications across the food supply chain and distributes the home grown products to wholesale and grocery stories. The company partners with emerging and established brands to deliver a private labeled product from one of their affiliated manufacturing facilities.
The private equity firm supported a few early acquisitions and provided the necessary startup capital.
Republic provided a $6.5 million receivables line of credit facility with no covenants or cash flow requirements. Republic’s ongoing funding will be used for the purchase of raw materials, equipment and to invest in their distribution assets. The company is planning to increase its revenue by 300% in 2020 and see its first months of profitability.
“The natural food industry is exploding with new brands and it is one of the most important developments to improving our overall health.” says Stewart Chesters, CEO of Republic. “We support several entrepreneurs in the food and natural food industries. It is a nice bonus when they are well capitalized but it isn’t normally the case or required by us.” Republic designed its team and products to support smaller and medium-sized companies.
