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.

 

 
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THE CHALLENGE

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. 

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THE SOLUTION

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. 

 
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