With outdoor spaces and upscale gardens a consistent but seasonal consumer demand across the country, a Midwest-based manufacturer of unique outdoor products knew it needed to find a flexible partner to react to dynamic and volatile market conditions. Republic Business Credit was the answer. Republic implemented a flexible line of credit to support the company’s seasonal-based liquidity needs.
“Shortly after funding, we adjusted our sales forecast up by 50% for the spring and summer. Thankfully, Republic immediately worked with us to upsize the facility in less than a week,” the company CFO said during the first month of the relationship.
Despite having been in business for more than 30 years, the manufacturer of various wood, tree, garden and plant-based products sought more flexibility from its senior debt lender to better prepare the company for surges in consumer demand. The company was seeking a senior lender who understood the opportunities and risks inherent for seasonal businesses.
The company services large outdoor retailers, regional distributors and mom-and-pop hardware stores throughout the country. Demand for products shifts regionally where planting seasons, clean-up seasons and weather can have a big impact on cash flow and working capital requirements. The company needed to refinance its existing bank line of credit to support its growth.
“We needed a proactive financing source that could react decisively and consistently during an uncertain economic period. We know that Republic will partner with us on the short term and long term needs of our manufacturing company,” the company CEO said.
Republic provided a $4.5 million ledgered line of credit facility secured by accounts receivables, inventory and equipment that injected significant working capital and stability during seasonal periods. Republic was introduced to the opportunity from a large commercial bank that wanted to provide the treasury management services — but was unable to approve a large enough line of credit during the seasonal periods.
“We are well positioned to support manufacturing and other seasonal businesses that need a dynamic working capital partner,” Republic President Robert Meyers said. “Our underwriting team worked with the company to structure a growth-orientated facility that amended a facility limit increase shortly after the initial funding.”
Republic plans to continue growing with the client.
“We believe our suite of lending products provides us the ability to truly get to know businesses, whether they are private equity supported or entrepreneurially owned. We are excited to support the growth ambitions of our new manufacturing client,” Republic CEO Stewart Chesters said.