Manufacturer of Neon and Industrial Signs
About the Company:
HQ Location: Southern United States
In Business For: 25+years
Annual Revenues: $10M+
Management: CEO has managed business since inception; 100% shareholder.
Customer Base: Many large, long term customers; banks, casinos, hospitals, stadiums, etc.
Operational Restructuring: Company was in the midst of restructuring, consolidating many locations. Reorganization created a deficit in cash flows, resulting in severely stretched A/P. The company needed additional capital to reach growth potential.
Liquidity Shortage: Company lacked liquidity, manifesting itself in a meaningful order backlog with many key, long term clients.
Refinance Factor Line: Company had financing from a factor that did not consider inventory or M&E in its borrowing base.
High Customer Concentration: High concentration of A/R due from few customers, exposing them to additional risk.
The Credit Junction worked closely with the company and its management to quickly craft a financing solution that met both their short and long term capital structure needs.