Veritas Financial Partners added a new incremental inventory line to Colonna Brothers’ existing $7.5 million credit facility, allowing the company to borrow against both the raw materials and finished goods which had absorbed much of their working capital.
A fourth generation family-owned business founded in 1918, Colonna Brothers packages and distributes grated cheese, bread crumbs, spices and other specialty food items.
Veritas had provided the previous facility to support future growth as the company sought to capitalize on new opportunities. Soon after, the expanding growth of key product lines resulted in increased inventory purchases which further constrained its working capital.
The increased credit line will allow Colonna to continue its product distribution to national grocery retailers in the Northeastern U.S.
“Having a lender who can respond to our changing needs is critical. The Veritas team understood the shifting supplier demands that tied up our working capital in inventory. Tony and his team quickly reacted to improve our terms and worked to grow with us,” said Dominick Gonnella, Colonna CEO.
“We are grateful the Colonna family put their trust in us. They have a long and successful history and we are thrilled to help them adjust to evolving market conditions and succeed well into the next generations,” said Tony Liobis, vice chairman and chief credit officer of Veritas.
