When a California-based aftermarket automotive supplier needed to increase its working capital after acquiring a competitor, Republic stepped in to provide more availability and a larger credit facility to support its cashflow.    

The private equity-owned company specializes in providing custom, luxury products to vehicle owners looking to upgrade across the country. The automotive supplier's decision to choose Republic stemmed from prior experience with another portfolio company borrowing from Republic. Having observed Republic's successful financing of that company, the supplier trusted Republic to refinance its bank line of credit and support its growth.  

Republic saw the value in the company’s management team, strategic direction and private equity sponsor. After reviewing its strong adjusted EBITDA performance, Republic understood that this company had already recovered from the acquisition expenses but is set to thrive in 2024 with the right lending solution.   

"Our established partnership with the company's sponsor, coupled with our track record of delivering timely, professional, and dependable support, solidified our position as the ideal lender for the business," stated Republic COO Matthew Begley. "The management team's capabilities and the company's past achievements instilled confidence in our ability to forge a successful relationship."  

Due to the company’s unique business model, it carries more SKUs and inventory than some other businesses. However, due to strong gross profit margins and a well-run business, Republic was able to provide availability against the full value of that collateral with an $8 million asset-based loan.  

“We continue to see demand to support growth-oriented opportunities across our sponsor driven ABL strategy,” said Republic President Robert Meyers. “There is additional credit support and comfort working with sponsors, combined with mutual time and cost savings from reoccurring transactions with the same equity partners.”  

Ultimately, Republic increased borrowing availability by more than $3 million at closing and will further benefit the company during the low and high seasons.   

“With Republic’s help, we were able to refinance our bank line of credit and significantly increase our borrowing availability to help us scale the business,” said the company’s CEO. “We are grateful that our private equity sponsor had an existing relationship with Republic so we could quickly partner.”