$1.5 Million Combination Credit Facility & Term Loan
The Client
The company has been in business for over 50 years and provides highly specialized components to the electronics industry. They have a large customer and manufacturing base in the United States and overseas and are known worldwide as an innovative and reliable supplier of highly engineered hardware for operational and advanced military systems. They manufacture critical microwave electronic components, sub-assemblies and integrated sub-systems for the Military Electronics Defense, Aerospace and Telecom Industries.
The Situation
The client was making a comeback from obstacles presented by the recession and was unable to attract affordable financing, primarily due to a period of decreased revenue during the economic slowdown and some outstanding debt overhang. They were experiencing increased demand and had aggressive plans to further grow sales but lacked the liquidity to purchase the additional raw materials needed to manufacture and distribute increased product to meet demand.
The Solution
Business Capital was able to articulate their unique situation and prove up their projections of dramatically increased profitability within a year with a lower cost of capital. Working with lending partners, Business Capital quickly structured a financing package that was cost effective and specifically addressed the client’s current and future needs for growth.
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