When the Azadian Group needed a senior debt partner to help restructure the balance sheet of QX Logistix, they chose a longtime friend and partner in Republic Business Credit. In addition, Republic Business Credit providing a $3,500,000 Ledgered Line of Credit to QX Logistix to supplement a $750,000 subordinated debt facility provided by Change Capital. At a time when there is widespread concern over the short term future for small business, QX turned to Azadian, Change and Republic to provide a flexible, adaptable and sterilized facility to meet the ever-changing landscape.
Republic was chosen by the Azadian Group due to its adaptable, creative and dependable reputation funding its original term sheets. Azadian Group acquired the company in 2019 and have made significant improvements in the short term that are already paying dividends as QX Logistix is well equipped to keep up with growing demand. Raffi Azadian, CEO of both the Azadian Group & Change Capital, knew several of the team at Republic, including its President, Robert Meyers and VP of Business Development, William Kemp. Raffi, Robert and William all have leading roles in the Secured Finance Network and Turnaround Management Associations that equip them to help small and medium sized companies throughout this period of uncertainty.
QX Logistix, based in Vernon, CA, provides transportation, warehousing, ecommerce fulfillment, and pool distribution along with several consolidation and deconsolidation services. The company services a significant portion of the consumer packaged goods industry, including electronics, apparel, furniture and warehousing for several of the largest online retailers in the country. QX is led by its CEO, Chris Carey, who said: “The partnership between the Azadian Group and the Republic Business Credit team was like watching a musical symphony; they understood our needs and provided a dynamic, combined growth facility that will set us up for long-term success.” Chris further said, “The logistics and warehousing industry has been through disruption before with the LA Port strike and earthquakes. I am confident that, with partners like these, we are well-positioned to confront any challenges ahead.”
Republic provided a $3,500,000 ledgered line of credit and a $250k Unbilled Receivables facility to help the cashflow gap between work being completed and the end customer accepting the invoices. In unison with Republic, Change Capital provided a $750,000 subordinated debt facility along with a third party which provided a $500,000 equipment term loan to provide additional liquidity. Robert Meyers, President of Republic, said: “It was great to work with Raffi and the teams at the Azadian Group and Change Capital again.” Robert further said, “Having known Raffi for over 15 years now, it is always a pleasure to work with someone we like, respect and have the upmost confidence they will be successful.”
Raffi Azadian, CEO of both Change Capital & the Azadian Group, added, “During a time when lenders are needed most to help the small business community, we chose a partner in Republic and Robert Meyers that shared our ideals, values and commitment to the industry.” Raffi further added, “The QX Logistix story is just beginning, we are excited to be able to support Chris and the team through both the equity and junior debt side to keep up with demand.”
The initial funding took place on Monday, March 16th, 2020, a day that saw the Dow Jones Industrial Average lose the greatest amount of value ever in a single day.
Republic Business Credit partners with banks, accountants, sponsors, lawyers and investment banks to collaboratively support entrepreneurs across the United States, to create value, by enabling them to focus on growing successful businesses.