$3.45 Million Senior Revolving Credit Facility
The company sells and supplies a select variety of medical supplies to businesses, including a comprehensive line of examination gloves. Their latex gloves are manufactured in compliance with federal safety standards and therefore, the company has a broad base of customers which include private and public hospitals, correctional facilities and prisons, restaurants, retailers, auto supply companies, printing companies, medical supply distributors, and dental practices.
The client wanted to exit their existing high interest credit facility but slow payment from its public and municipal customers combined with insurmountable debt on the high interest loan, was creating a cash flow challenge and constraints in competing for new business and attracting an alternative lender. Business Capital was referred by a well-known national bank, which was unable to assist in providing a credit facility until the company demonstrated consistent profitability
Business Capital was able to articulate their unique situation and prove up their projections of dramatically increased profitability within eighteen months with a lower cost of capital. Working with lending partners, Business Capital structured a more affordable revolving line of credit targeted specifically to address the client’s current and future needs. The new credit facility substantially reduced the client’s cost of capital and decreased their interest rate by 50% allowing the them to realize plans for growth.