Business Capital Secures Mezzanine Financing for Leading Manufacturer of High Performance Training Accessories and Fitness Products
“We put our clients’ priorities first, so when we learned one of them needed an infusion of working capital to support their vendor transition efforts, we referred our client to Business Capital to help. The transaction was completed very quickly and this is a great example of a successful collaboration.”
Peter Wentworth, Vice President, Comerica Bank
The company is primarily known for its extensive line of patented, high-end fitness accessories which it manufactures and distributes. In addition to gloves, the company offers a full line of products for power lifting, strength training, home exercise and functional training. All of these products are found in most gyms and larger sporting goods retailers nationwide.
To reduce costs and increase profitability, the company decided to transfer business from a single, high-priced China based manufacturer to several new Chinese manufacturers with better pricing. This process incurred one-time expenses and liquidity constraints. The company was in need of a capital infusion to keep margins stable during the transition, make good on terms with new manufacturers and remain compliant in order to ensure commitments and credibility with the new factories in China were maintained.
Business Capital was referred in by the client’s incumbent lender and, in less than three weeks, was able to deliver an intelligently structured, affordable sub-debt credit facility which provided solid ground for a smooth vendor transition, higher profit margins and forward momentum in their plans for growth.
“In today’s lending climate, there are many challenges that can delay getting a client funded. At Business Capital, we work harder and smarter to overcome these obstacles and deliver exceptional results quickly for our valued clients and referral sources.”
Chuck Doyle, Managing Director, Business Capital