TAB Bank funded a $15 million asset-based line of credit for a new client that manufacturers and distributes consume packaged goods throughout North America and is beginning to further expand internationally.
Since 1993, this client has been focused on delivering consumer packaged goods to consumers by providing consumer goods under its own brands as well as through private label and licensing agreements. The company’s portfolio of products includes food, health and wellness, personal care and beauty products sold to mass retailers, grocery stores, drug stores and convenience stores.
The company ran into headwinds with its previous lender due in large part to skyrocketing freight costs and supply chain disruptions related to the COVID-19 pandemic, which deteriorated its gross profit margins. The company used the credit facility provided by TAB Bank to refinance its existing bank facility and free up additional availability for ongoing working capital needs
“We are thrilled to partner with this dynamic company, its ownership and management team, and we look forward to building a long and successful partnership,” Brett Horwitz, managing director and head of originations for the western region for TAB Bank, said. “This company has weathered several challenging market cycles in its history and has always found a way to come back stronger. This is a testament to their great leadership and their determination to succeed. I believe this time will be no different, as their budget-friendly portfolio of products and strong customer relationships position them for success in the current economic environment and beyond.”
