US Capital Partners provided a $1.5 million accounts receivable line of credit scalable to $5 million for Hans Drake International Corporation (Hans Drake), headquartered in Irvine, CA. US Capital Partners is a private investment bank that makes direct debt investments, participates in debt facilities, and arranges equity placements for small to lower middle-market companies.
“We are extremely pleased with this intelligently structured, scalable financing, which was designed specifically to support our business growth,” said David R. Garcia, President and CEO at Hans Drake. “Recently, there has been a strong increase in demand for our quality product lines from new domestic and international retailers and distributors. This new credit facility will provide the additional working capital we need to increase our inventory and fulfill new orders.”
“We are delighted to have structured and provided financing that is scalable to $5 million for Hans Drake,” said Jeffrey Sweeney, CEO and managing director at US Capital Partners. “With a hundred percent of the company’s receivables with a single customer in Australia, this represented a challenging situation for most traditional lenders. Despite concentration risk combined with foreign customer risk, US Capital Partners was able to provide a scalable line of credit that not only leveraged Hans Drake’s foreign receivables but also secured the line for receivables expected to be generated through new US customers. Importantly, US Capital Partners was able to design a debt facility that did not require a personal guarantee.”
Hans Drake is a leader in the world of nutritional products for enhanced fitness workout performance and weight management. The company currently produces a growing range of high-quality branded product lines, which it distributes throughout the United States and abroad.
Since 1998, US Capital Partners has been providing prompt, innovative, and reliable financing solutions including lending, equity financing, and debt re-structuring to businesses across the United States and abroad.