Posted on July 11, 2022
New Orleans, LA – When a Texas-based manufacturing company needed a working capital facility to meet increased demand in the energy sector, they sought a trusted and reliable partner to fuel their growth plans. Republic Business Credit collaborated with private equity sponsors to structure a factoring facility that doubled its availability while maintaining the treasury management services as the incumbent bank. Republic was referred into the credit facility by several partners across the private equity, independent sponsor, and asset-based lending community.
Republic was selected for its expertise, reputation, and long-term support of the oil field service industry. Additionally, Republic worked with the company and private sponsor over several years to time up the refinance to take advantage of market conditions and opportunities.
The CEO of the company said, “Republic worked with us over the years through the normal ups and downs of the energy industry, so it was ideal and easy to partner with an entrepreneurial finance company during an uncertain but potentially opportunistic market for us.”
The manufacturer was formed through an initial acquisition and a series of smaller add-on acquisitions in the oil field service industry, with the aims of vertically integrating both the product and service suite of solutions to energy companies located throughout Texas and Louisiana.
The company is able to provide manufacturing, installation, welding, fabrication, and repair services across its client base. The flexibility to focus its efforts across the suite of products uniquely situated it to outperform its competitors during the downturn and take advantage of the opportunities during a rebound in energy prices.
The oil field service company is led by a dynamic and experienced management team that have been successful in the oil field industry for decades. The company prides itself on a diverse customer base that includes both energy and non-energy dependent customers that seek added value partners in the supply chain.
Republic provided a $5.5 million Ledgered Line of Credit Facility to provide funding for their payroll, material costs, equipment repair, and the acquisition of new assets to match their increased demand forecast in 2022. “Companies working in the Permian and Eagle Ford shale basins are challenged by unprecedented supply and demand issues,” said Robert Meyers, President of Republic. “We have always been supportive of customers in the oil field industry, so we are able to understand the rapid growth demands combined with the uncertainty and unpredictability of present market conditions.”
Leigh Guglielmo, SVP of Business Development and recent Women in Secured Finance award winner, added, “We partner with many of the downstream and midstream service firms to support the largest employer of our communities across the Gulf Region and it was great to partner with another well-run company.”
Republic Business Credit partners with banks, accountants, private equity sponsors, independent 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
Posted on June 16, 2022
Houston, TX
When a UK headquartered temporary healthcare staffing provider decided to open operations in the US, they tasked Fast AR Funding to keep up with demand. Shortly after setting up in the US, the domestic growth quickly outpaced expectations and the company found themselves with a cashflow gap to keep up with their growing payroll. The UK parent turned to Fast AR Funding to enable its US operations to become self-sufficient as they planned to expand in other countries as well. Fast AR Funding provided a $200,000 spot factoring solution with a high advance rate to support their growing payroll needs in 2020 and beyond. Within the first six months as a client, Fast AR increased the facility limit to over $1,000,000 as they saw a huge surge in the demand for nurses across the country.
The nurse staffing company provides temporary placement of qualified healthcare professionals to hospitals, regional medical providers, and Healthcare VMOs. The demand for travel nurses across the different regions of the country will continue during the pandemic as healthcare regions continue to see consistent fluctuations in the number of cases and corresponding medical personnel necessary. Hospitals and healthcare systems continue to react to the virus hotspots across the country. CEO of the UK parent said, “Fast AR Funding closed our facility in only a few days and has allowed us to keep up with the hospital demand without any hesitation”; he further added, “Our biggest surprise with Fast AR Funding is the instantaneous access to decision makers that understand our business and continue to increase our facility as necessary, we are on pace to need more than $2,000,000 in working capital by the end of October.”
In order to ensure their payroll needs were covered, the company sought Fast AR’s expertise in the temporary staffing space. Fast AR provided a selective factoring facility with our seamless online application and technology enabled approval process. Fast AR Funding provided the first funding within 72 hours that allowed the client to meet their payroll the same week they completed the application. Fast AR’s selective factoring facility allows the client to submit any amount of invoices needed for payroll without any minimums or contracts. The company continues to choose the flexibility and speed of Fast AR over other factoring alternatives. “Factoring is a great solution for entrepreneurs in the temporary staffing space” said Fast AR Funding’s New Customer Manager – William Kemp; he further added “Despite the ongoing pandemic, it is wonderful to help a great company succeed, grow their business and help support our healthcare community’s response to Covid 19 across the country.”
Posted on June 16, 2022
Los Angeles, CA
When a Los Angeles apparel manufacturing and import company sought funding for their Fall and Winter orders, they chose Republic Business Credit to fuel their growth. Republic approved a scalable traditional factoring facility to support their expected growth in anticipation of the orders they have received for the additional reopening of retail stores. Republic fully approved the customer limits necessary to enable the company to fulfill large purchase orders in the midst of the Pandemic. The Apparel company CEO said, “We are excited about showcasing our growing fashion line and wanted a factoring partner that could grow with our brand.”
As the Pandemic has caused postponements, cancellations, and shipment uncertainty throughout the retail supply chains, Republic has supported clients throughout this uncertain and unpredictable period in the history of retail. Republic Business Credit provides apparel importers, distributors, and manufacturers with the necessary support and guidance to adapt during the staggered reopening.
The company is a distributor of women’s comfy chic dresses, pant suits, and skirts that are ideal for either working from home or going out. The brand is focused primarily on manufacturing in the USA and sources nearly all of its material domestically. The passion for the brand comes from a balance of fit and texture for working professional women. The brand is well positioned for the post Covid-19 store re-openings as they had no debt entering the 2nd quarter of 2021. The brand sought a partnership with an entrepreneurial finance company with deep industry experience and the ability to scale up its facility.
Republic provided a $1.5m traditional factoring facility with credit protection and extended customer payment terms for a Los Angeles based brand. Republic’s funding will eliminate their cashflow gap between paying suppliers and receiving payments from retailers. The company is unsure what the holiday season will likely bring, but it is confident they have a partner during all of the “return to work” stages. Republic’s COO, Matt Begley said, “We believe our factoring and asset-based lending products will partner well with businesses as the economy gets back to a growth track.” He further added, “We are excited to help all brands on the front lines of the fourth quarter and future growth.”
Republic Business Credit provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the United States. Republic 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.
Posted on June 16, 2022
New Orleans, LA
When a Gulf region-based food service company sought more funding than their incumbent bank lender could provide, they fed Republic Business Credit the order for growth-orientated working capital. Republic approved a non-dilutive and adaptable facility that provided availability on their account receivables and purchase orders. The food service company was looking to accelerate its ability to buy grocery inventories, paper products and hire staff to keep up with the growing demand across the public-school systems.
Republic is a proud supporter of the food and beverage industry, especially our clients that buy produce through their local farms and produce providers during uncertain growing seasons. The total US packaged food market segment is expected to exceed a trillion dollars in 2021 and continue to see a CAGR in excess of4%. The natural food and beverage category represents 10.5% of the volume, but nearly 30% of the dollar growth volume across the total industry, according to several sources. Republic is increasingly providing more working capital financing in the natural, organic, ingredient, and plant-based categories.
The food service company provides breakfast, lunch, snacks, dinner and drinks to school districts across the gulf region,and continues to add on additional school districts and support thousands of students. The company primarily sells directly to the school districts throughout the Gulf region. The rapidly growing company far exceeded its sales forecast during the Covid-19 pandemic as students needed additional essential services whether they were in school or not. The company supplies meals throughout the year and remains at the heart and belly of many students’ meal programs. As the founder told Republic when they were searching for capital,“This debt facility will not only increase our ability to grow as a company, but it will allow us to help so many more students and schools as we turn into 2021 back to school season.”
Republic provided a $5m ledgered line of credit facility with a $500,000 purchase order call facility to a Gulf Region based Food Service Company. Republic’s funding will enable the company to buy more bulk inventory, hire additional staff and increase the number of school districts they can support each school year. Republic structured the ledgered factoring facility to allow for rapid growth without any financial covenants or field exam requirements. The company expects a strong close to 2021 and plans to request an inventory and equipment term loan facility as they continue to build their company.
Republic’s President, Robert Meyers said, “We believe our factoring, ABL, and inventory lending products are great supplements to the vision of our growing portfolio of food brands.” He further added, “we are excited to help enable our entrepreneurs to focus on adding revenue while knowing they have a supportive partner to weather any supply chain or growth issues they might encounter during the pandemic.”Republic’s CEO, Stewart Chesters, added “The food supply chain is critical to everyone’s well-being, we are excited to help so many food companies as they lead us into healthy food alternatives.” Republic Business Credit provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the United States.
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.
Posted on March 29, 2021
Republic Provides Direct to Consumer Asset Based Loan to Paul Fredrick
NEW ORLEANS (PRWEB) JANUARY 28, 2021
When a portfolio company of ClearLight Partners, Paul Fredrick, sought to refinance its existing bank facility, they partnered with Republic Business Credit. Republic provided a scalable, flexible, and growth orientated facility with full availability on inventory, merchant accounts, and direct to consumer proceeds to leverage Paul Fredrick’s e-commerce strategy.
Paul Fredrick welcomed the opportunity to borrow on the full value of their inventory without a sub-limit or cap in relation to their accounts receivable that a traditional asset-based loan would include. The private equity fund shared with Republic, “We needed a strategic partner that understood Paul Fredrick’s e-commerce and D2C strategy and trusted the team’s experience in the sector.”
Paul Fredrick is a leading designer and retailer of men’s apparel and related accessories. The company was originally founded in 1986 as a seller of dress shirts and has evolved over the years to offer a full assortment of dress and casual menswear. Paul Frederick is headquartered in Baltimore, MD. In December of 2017, Neal Black led a team of former Jos. A. Bank executives in partnering with ClearLight Partners to acquire Paul Fredrick. Paul Fredrick has weathered the COVID storm very well given their direct to consumer strategy and wanted to partner with an entrepreneurial finance company that would support their significant growth aspirations over the coming years.
Neal Black, Paul Fredrick’s CEO said, “Republic stepped up to provide the right facility to support our continued growth, allowing us to fully leverage our inventory to keep up with our 2021 growth projections.” Neal added, “While banks typically have a standard formula, Republic really took the time to understand what would enable our business to be successful for the long term. Hats off to the management, underwriting and credit teams for leaning into our business.”
David Ullman, COO/CFO of Paul Fredrick who helped structure the financing said, “We are building a great company at Paul Fredrick and Republic’s support combined with our capital partners has positioned our brand for dynamic future growth.”
Republic provided a direct to consumer inventory loan facility that provides significant availability on Paul Fredrick’s inventory, accounts receivables, merchant accounts and e-commerce related proceeds. Republic’s funding refinanced Paul Fredrick’s existing bank facility while providing ample liquidity for future growth. The company believes the market will continue to remain unpredictable but are excited about how well they have performed in 2020.
“We enjoy partnering with great founders and strong equity partners that see value in non-dilutive debt financing,” said Robert Meyers, President of RBC.
Republic’s COO, Matthew Begley further added, “We have built our platform to help support companies that need a mix of scalable growth-orientated solutions across our asset-based lending, direct to consumer and factoring products.”
Republic Business Credit was referred into this opportunity by Mike Toomey of Danu Capital, and Mike commented, “I have worked with Matt for many years, and his team at Republic Business Credit delivered on their promises of speed and availability.” Mike further added, “We explored several debt options for Paul Fredrick, but the Republic team wanted to work with this brand, and their structure was a perfect fit for the company’s growth.”
Republic 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.
Posted on March 29, 2021
Republic Business Credit refinances a Midwestern automotive and industrial supplier to facilitate future acquisitions
NEW ORLEANS (PRWEB) NOVEMBER 19, 2020
When a Midwest-based privately owned plastics manufacturer needed more working capital than their bank could provide, they hitched their wagon to Republic Business Credit. Despite many years of profitability, the company wanted to expand their access to working capital to help keep up with demand in the industrial and appliance industries. In addition to their expected organic growth, they sought a scalable and growth-orientated facility to place bids on a few potential acquisition targets. The company was seeking to partner with a senior lender that understood the opportunities and risks inherent in its business.
The company is a plastic parts manufacturing company that services large and medium-sized companies across the automotive, appliance, energy and industrial industries throughout the US. The company specializes in custom plastic manufacturing, typically in the long run basis, as you would see in the automotive sector. Additionally, they have recently undertaken a few short manufacturing runs in the Personal Protective Equipment (“PPE”) supply sector. The company needed to refinance its existing bank line of credit to support their growth and potential acquisition plans. The company President said, “We needed a finance source that could react quickly, decisively, consistently and in unison, as we explore several growth options during an uncertain economic period,” and he further added, “We know that Republic will partner with us to evaluable the acquisition opportunities and support our manufacturing company.”
Republic Business Credit provided a $3,750,000 ledgered line of credit facility secured by accounts receivables and inventory that injected significant acquisition and growth working capital into its war chest. Republic was introduced to the opportunity from an investment bank that was advising the company on a strategic basis to raise debt and potentially equity in the future. Republic’s President, Robert Meyers, said, “We are well-positioned to support manufacturing companies that are looking to leverage their balance sheet for growth,” he further added about the company, “Our team worked with the Company to structure a growth-orientated facility that provided sufficient liquidity to enable the management team to focus on the future.” Republic will either increase the line of credit or provide an additional add-on facility to help with the upcoming acquisition strategy.
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. Republic’s CEO, Stewart Chesters added, “We believe our suite of lending products will be even more necessary as states reopen. We look forward to being a significant part of helping small and medium sized businesses across many sectors and with the ambitions of our new manufacturing client.” Republic Business Credit provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the United States.
Posted on March 29, 2021
Republic Business Credit supports a California based apparel manufacturer with a traditional factoring facility to prepare for the holiday season
LOS ANGELES (PRWEB) NOVEMBER 18, 2020
When a Los Angeles apparel manufacturing and import company sought funding for their 2020 Holiday season orders, they chose Republic Business Credit to accelerate their growth. Republic approved a traditional factoring facility to fund their confirmed orders for the Holiday season, including an additional shipment of Personal Protective Equipment (“PPE”) in the late summer. Republic fully approved the customer limits necessary to enable the company to fulfil the large purchase orders and the add online for PPE products in the midst of Covid-19. The Apparel company CEO said, “We are excited about showcasing our winter fashion line and excited to have a factoring partner that supported our expansion into gloves.”
The company is a distributor of footwear for men and women that recently expanded into fashionable gloves and some disposable gloves for PPE. The brand is focused primarily on manufacturing in the USA for its branded products, and then sources its PPE from overseas. The company believes their products will provide both warmth and some peace of mind from the pandemic this winter. While the PPE gloves are being sold into major home goods stores, their branded lines will be available most major retailers. The company is positioning its brand to continue to support PPE during the pandemic while focusing on investing and expanding their brand for the post-Covid-19 world. The company sought a partnership with an entrepreneurial finance company with deep fashion brand and apparel industry experience.
Republic Business Credit provided a $2.5m traditional factoring facility with credit protection, with a $750,000 inventory sub-limit to help support their goods in transit into Los Angeles. Republic’s funding will empower the entrepreneurs to grow their branded products and supplement their revenue with PPE gloves. The company is unsure what Spring 2021 will likely bring, but it is confident they have a partner during all of the “return to normal” stages. Republic’s COO, Matt Begley said, “We believe our factoring and asset-based lending products partner very well with growing brands during this uncertain time.” He further added, “We are thrilled to support great brands across the clothing, footwear and accessory categories.”
Republic Business Credit provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the United States. Republic 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.
Posted on March 29, 2021
Republic Business Credit funds a West Coast Digital Printer with a facility to help provide ongoing and seasonal working capital requirements.
LOS ANGELES (PRWEB) OCTOBER 01, 2020
When a Californian privately owned digital print and marketing solutions company sought funding for their future business plans, they partnered with Republic Business Credit. The company brought on Republic as their first senior debt provider to better leverage the invested capital from the founders. Republic approved a flexible, scalable and growth-orientated working capital facility to exceed its goals amidst the market conditions caused by Covid-19. The company was seeking to partner with a senior lender that understood the opportunities and risks inherent in its business.
The company is a digital print and marketing solutions company that supports large and medium-sized companies throughout the US. The company specializes in providing print-on-demand, short-run publications, commercial printing, packaging, large format signage, direct mail, fulfilment, and self-publishing solutions with locations in the West and Rocky Mountain regions. The company wanted to bring on a senior debtor provider to ensure they could support the surge in purchase orders combined with supporting the inevitable supply chain and working capital issues that precede growth. The company CFO said, “We wanted to find a senior debt partner during the pandemic so that we had the comfort they would support us over the next few years no matter what the economy may bring,” and she further added, “We know that Republic can help us through the least certain times and that will better prepare our business to seek new revenue and product opportunities.”
Republic Business Credit provided a $2.0 million ledgered line of credit facility that injected significant new cash into the company from its available assets. Republic was introduced to the opportunity from the regional bank that was unable to underwrite the credit during the current pandemic. Republic’s EVP, Jason Carmona, said, “We are well-positioned to help companies across the balance sheet through both asset-based lending and factoring,” he further added about the company, “Our team worked with the Company to structure a creative and flexible facility that provided liquidity so the management team could focus on growth.” Republic will likely add on an equipment term loan facility in 2021 as the company views significant growth on the horizon.
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. Republic’s CEO, Stewart Chesters added, “We believe our suite of lending products will be even more necessary as states reopen. We look forward to being a significant part of helping small and medium-sized businesses with the ambitions of our new Printing client.” Republic Business Credit provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the United States.
Posted on September 27, 2020
Republic Business Credit funds a food ingredient manufacturer company in partnership with a leading food industry consultant
LOS ANGELES (PRWEB) SEPTEMBER 24, 2020
When a West Coast-based natural food manufacturing company sought more funding than their incumbent bank lender could provide, they fed the order to Republic Business Credit for increased access to working capital. Republic approved a scalable and non-dilutive growth-orientated facility that provided availability on their account receivables. The natural food ingredient manufacturing company was looking to accelerate its growth across its product lines. Republic is a determined supporter of the natural food trade shows, including its regional associations, Naturally. The total food and beverage market is over half a trillion dollars and continues to grow each year. The natural food and beverage category represents 10.5% of the volume, but nearly 30% of the dollar growth volume across the total industry, according to several sources. Republic is a proud supporter of the food and beverage industry, increasingly more in the natural, organic, ingredient, and plant-based categories.
The food manufacturing company provides several unique ingredients to natural food brands across the country. The company sells to distributors, co-packers, and manufacturers of healthy food products across the country. The rapidly growing company outpaced its sales targets in the midst of the Covid-19 pandemic and wanted a partner to help double its revenue next year. As the founder told Republic shortly after closing, “This debt facility will not only increase our ability to grow as a company, but it will allow us to retain greater ownership of the company as we didn’t need to raise additional equity.”
Republic provided a $2.75m ledgered line of credit facility with to a West coast-based food manufacturing company. Republic’s funding will eliminate the cashflow gap from the difference in timing from their suppliers and their customer payments. Republic structured the ledgered factoring facility to allow for extended terms without any financial covenants or field exam requirements. The company expects a strong close to 2020 and plans to ask for a facility limit increase in early 2021. Republic’s President, Robert Meyers said, “We believe our factoring, ABL and inventory lending products are great supplements to the vision of our growing portfolio of food brands.” He further added, “we are excited to help enable our entrepreneurs to focus on adding revenue while knowing they have a supportive partner to weather any supply chain or growth issues they might encounter during the pandemic.” Republic’s CEO, Stewart Chesters, added: “The food supply chain is critical to everyone’s well-being, we are excited to help so many food companies as they lead us into healthy food alternatives.” Republic Business Credit provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the United States.
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.
Posted on September 26, 2020
Republic Business Credit supports a California based apparel manufacturer with a traditional factoring facility in the midst of a pandemic
LOS ANGELES (PRWEB) SEPTEMBER 22, 2020
When a Los Angeles apparel manufacturing and import company sought funding for their 2020 Fall and Winter orders, they chose Republic Business Credit to fuel their growth. Republic approved a scalable traditional facility to support their expected growth in anticipation of the orders they have received for the additional reopening of retail stores. Republic fully approved the customer limits necessary to enable the company to fulfill large purchase orders in the midst of Covid-19. The Apparel company CEO said, “We are excited about showcasing our growing fashion line and wanted a factoring partner that could grow with our brand.”
As the Pandemic has caused postponements, cancellations, and shipment uncertainty throughout the retail supply chains, Republic will support the client throughout this uncertain and unpredictable period in the history of retail. Republic Business Credit provides apparel importers, distributors, and manufacturers with the necessary support and guidance to adapt during the staggered reopening.
The company is a distributor of women’s comfy chic dresses, pantsuits, and skirts that are ideal for either working from home or going out. The brand is focused primarily on manufacturing in the USA and sources nearly all of its material domestically. The passion for the brand comes from a balance of fit and texture for working professional women. The brand is well-positioned for the post-COVID-19 store re-openings as they had no debt entering the 2nd quarter of 2020. The brand sought a partnership with an entrepreneurial finance company with deep industry experience and the ability to scale up its facility.
Republic provided a $1.5m traditional factoring facility with credit protection and extended customer payment terms for a Los Angeles based brand. Republic’s funding will eliminate their cash flow gap between paying suppliers and receiving payments from retailers. The company is unsure what the holiday season will likely bring, but it is confident they have a partner during all of the “return to work” stages. Republic’s COO, Matt Begley said, “We believe our factoring and asset-based lending products will partner well with businesses as states reopen in 2020.” He further added, “We are excited to help all brands on the front lines of supplying store reopening’s and returning closer to our normal lives.”
Republic Business Credit provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the United States. Republic 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.
Posted on September 26, 2020
Republic Business Credit partnered with the Management Team to provide credit protection and receivable management services.
LOS ANGELES (PRWEB) SEPTEMBER 17, 2020
When a West Coast family-owned apparel importer wanted credit and collection services, they chose Republic Business Credit to help support their credit decisions during the Covid-19 pandemic. Republic provided a stress-free, credit protection solution that gives comfort for any new orders the company will consider shipping to both major and regional retailers. According to a recent CNBC article, as the pandemic stretches on, the number of retail bankruptcies are quickly approaching the highest number in over a decade. As of early August, over 43 retailers have filed bankruptcy, with many more expected to follow suit before the pandemic is over. Republic believes in the future of retail and is continuing to approve orders for its clients despite what some of the newspapers might refer to as the “end of retail.”
The company has seen a recent increase in shipments for their spring and summer orders and is starting to slot the upcoming holiday season. The company founder said, “The comfort of knowing that we will collect our wholesale receivables provides us the confidence to continue supplying large retailers while increasing our responsiveness to fill orders to established retailers that are reopening in certain core markets.”
The company primarily imports a women’s fashion line in the light, work from home, and leisure categories. They sell unique style dresses, blouses, pants, and loungewear in the medium price segment. The company believes it is well-positioned for the post Pandemic transition having minimal debt and the ability to limit their overhead expenses as an import company, but sees an unpredictable year in terms of revenue and credit worthiness of retailers. The company finally set up its non-borrowing credit facility after many years of conversations in light of everything going around the world. The credit protection allows the company to place an order with its vendors, knowing that they will be able to pay their suppliers assuming the product successfully arrives at the retailer.
Republic Business Credit provided a non-borrowing, traditional factoring facility with credit protection and collection services, with minimal annual volume requirements. Republic provided the credit information to support the decision for which orders to take and which ones to avoid during the recession. The company believes there will be an uptick in volume as the year progresses but it might be unevenly spread across his customer base depending on reopening guidelines.
“We will always support the apparel and consumer packaged goods industry with our traditional factoring product,” said Matthew Begley, COO of Republic, continuing, “We added our direct to consumer and asset-based lending products to support a wider range of businesses cycles throughout the consumer packaged goods community.” Republic provides factoring, asset-based lending, and direct to consumer facilities up to $10,000,000 to businesses throughout the country.
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.
Posted on September 26, 2020
Republic Business Credit partnered with a private equity fund to refinance its existing bank facility and provide more availability on their inventory.
NEW ORLEANS (PRWEB) SEPTEMBER 15, 2020
When a private equity-owned west coast apparel accessory manufacturer needed more availability and additional liquidity from their loan facility, they chose Republic Business Credit to accelerate their growth through the pandemic. Republic provided a growth-orientated facility that gives availability on inventory, merchant accounts, and direct to consumer proceeds. The apparel manufacturer welcomed the opportunity to fully leverage their inventory without a restriction or cap in relation to their receivables, as a traditional asset-based loan would structure. The private equity fund operator shared with Republic, “The comfort of having a strategic partner during a recession that is comfortable with our pivot to e-commerce is invaluable. We would reduce shareholder value if our plans were tied solely around a wholesale strategy at the moment.”
CLIENT BACKGROUND
The company manufactures and distributes licensed and branded apparel accessories including bags, wearables, and other wardrobe add-ons. Typically finding itself in the moderate to premium categories, the company receives glowing customer reviews through Amazon. In the post-COVID-19 transition, the company feels it is well-positioned, seeing a lot of upside in their product category. Additionally, for the short-term, the company sees benefits arising from the current ‘virtual world’ as it allows a better centralization of their inventory and a positive impact on supply chains.
Without the just in time demands of a wholesale strategy, the company is better positioned to time launches and partnerships through their eCommerce and direct to consumer offerings. In the longer term, expanding its relationships with the licensees to add-on related category products to the same target customers. This will increase their wallet share and more repeat purchase opportunities.
SOLUTION
Republic provided a $3.0m direct to consumer inventory loan facility. This facility provides significant availability on their inventory, receivables, merchant accounts, and eCommerce related proceeds. Republic’s funding refinanced its existing bank facility while providing ample liquidity to enhance its e-commerce strategy. The company believes it will be an unpredictable wholesale revenue year. They remain excited about the uptick in orders it has received directly from customers.
“We enjoy partnering with strong equity partners that see value in non-dilutive, growth-supporting, debt financing opportunities,” said Robert Meyers, President of RBC. Adding further, “We support companies that need a mix of scalable growth-orientated solutions. Our solutions can come from across our asset-based lending, direct to consumer and factoring products.”
Republic partners with banks, accountants, sponsors, lawyers, and investment banks to collaboratively support entrepreneurs across the US. Republic looks to create value, by enabling them to focus on growing successful businesses.
