Accounts Receivable Line of Credit
Sealants and Adhesives Manufacturer
Situation
This early-stage company manufactures sealants and adhesives for customers across the United States and Mexico. The owner secured an SBA Loan to finance equipment and start-up costs but was also seeking a working capital line of credit to help support growth. A local community bank was unable to offer the company a line of credit because of the limited operating history and the SBA had a lien on all business assets. As an alternative funding solution, the bank referred the owner to Magnolia Financial.
Solution
Impressed with the owner's industry experience and the company's customer list, Magnolia negotiated a subordination with the SBA and extended the company a $1,000,000 working capital line of credit secured ONLY by Accounts Receivable. In addition, Magnolia helped the company secure credit insurance on the international Accounts Receivable; thereby making the Mexican customers eligible for funding. The company now has the working capital needed to support their growth and execute the business plan. All made possible by the credit facility provided by Magnolia Financial.
What our Clients Say
Kerry Coker, KAMADO JOE
"A Breath of Fresh Air"
"The Magnolia guys have a real ‘can do’ attitude. Marc Smith and his team are super responsive and upbeat. They can fund within a matter of days. They are always looking for positive opportunities for their clients. It's a breath of fresh air to work with someone like that."
Frank Workman, Dealers Supply & Lumber Company
"Available when we needed them"
""Magnolia was really available when we needed them, and the leadership at Magnolia was empathetic to the cold, harsh nature of traditional banking. It gave us a tremendous amount of comfort during a difficult time. Marc Smith and his team really understood where we were, where we were going and gave us the help we needed to get there.""
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