Background:
Established in 2004, this medical device manufacturer and provider of maintenance and repair services takes great pride in providing the highest standards of quality and reliability.
Financing Solution: Asset Based Loan
Initial Amount: $1,300,000
Location: Northwest
Industry: Medical device manufacturer
Problem:
After a twenty-year relationship with their bank, the company was having difficulty complying with the financial covenants required by their loan agreement. The bank became uncomfortable and was moving to sever the relationship. Now, the business needed to find new financial partners to fulfill banking and working capital needs.
Solution:
While Commercial Funding Inc. can’t provide checking, savings, and deposit services, we do provide multiple types of working capital solutions. CFI is not a bank and therefore does not require financial covenants. CFI was able to assist the medical device manufacturer with a solution that met their needs. We evaluated the most recent three-year financial history and realized their accounts receivable (AR) was growing. Because their AR was over $500,000, we were able to structure an asset-based loan (ABL) that aligned with the requirements of the business, empowering them to navigate their financial challenges with confidence and agility.
The ABL provides flexibility and the company can use the line of credit to fund business operations, equipment purchases, and other financial needs.
