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.
Posted on June 8, 2020
When a West Coast family-owned furniture manufacturer needed more availability and additional liquidity from their debt facility, they chose Republic Business Credit to provide the bridge to help through the Pandemic. Republic presented a stable, consistent and growth-focused approach to the management despite the ongoing recession and public health crisis. Republic provided credit protection on their receivables, less restrictive concentration limits and a higher advance rate on their eligible collateral. Despite slightly increasing their cost of capital with a non-bank finance company, they prioritized having no financial covenants to better equip their evolving marketing strategy during the Pandemic.
The company has seen a tremendous demand from large eCommerce vendors to help equip remote offices for those switching to telecommuting over the past few months. The company CEO said, “The comfort of knowing that we will collect our wholesale receivables provides us the confidence to continue supplying large retailers in the medium term, while increasing our responsiveness to the short-term needs of our customers that are working from home.”
The company manufacturers and imports home office and entertainment furniture including desks, chairs, stands and consoles. The company typically finds itself in the moderate and mainstream affordable price categories. The company believes it is well-positioned for the post Pandemic transition, as they see a lot of upside in both the short and medium terms for countrywide office reopening plans. In the short-term, the company will continue to benefit from the “working from home” orders as people look to pivot away from their dining room table offices. In the medium term, the company is exploring options on the commercial side as their customers are reexamining open office concepts to comply with social distancing guidelines from the CDC and State Health Departments around return to work protocols.
Republic Business Credit provided a $3.5 million non-recourse factoring facility that provides credit protection without any covenants. Republic’s funding was used to refinance out the existing bank facility while providing over a million dollars of availability to respond to customer demand. The company believes it will be an unpredictable revenue year, that while they are confident there is a significant uptick in demand, they are not sure of the timing of the orders given the ever-changing “return to work” guidelines and timelines. “We continue to see small and medium-sized businesses exploring industry growth opportunities, while struggling with inconsistent behaviors from their incumbent bank lenders,” said Robert Meyers, President of Republic. He further added, “We have built our business to help support companies that need a mix of growth and recovery solutions across our factoring and asset-based lending products.”
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 June 8, 2020
Republic Business Credit is proud to announce the hiring of Tae Chung as Senior Vice President of Business Development in its Los Angeles office. Tae will significantly increase our presence in the California traditional factoring market, further building upon the acquisition of Continental Business Credit in 2019. In addition to non-recourse factoring, Republic provides asset-based lending, direct to consumer financing and recourse factoring for companies throughout the consumer-packaged goods industry. Tae will lead Republic’s efforts in the apparel, accessory, electronic, textile, furniture and importer segments.
Tae has built his career in the California apparel industry, entering his 20th year of providing factoring and asset-based lending solutions. He has a deep industry knowledge of the California factoring and lending markets. Tae is a member of the California chapter of Secured Finance Network, The Professional Club and various trade show associations. Tae will be located out of our new Los Angeles office, headed by its Chief Operating Officer, Matthew Begley, and EVP – Western Regional Manager, Jason Carmona.
Republic is committed to assisting apparel companies through this Pandemic, supporting their reopening plans and the likely challenging market that will follow. Republic understands the negative impacts across most retail, e-commerce and wholesale manufacturers and distributors, and believes it is well-positioned to help. While Republic provides many solutions for clients, in the short term it believes its factoring solutions and inventory funding options provide a unique solution to help apparel companies continue to ship while things begin to stabilize. Republic provides factoring and lending facilities up to $10,000,000, therefore its credit and collection product is able to support both small and large companies. Republic’s President, Robert Meyers said, “We continue to heavily invest into our non-recourse and asset-based lending offerings in the California market. We believe we are well-positioned to pick up market share during this upcoming recession.”
Republic believes in light of continued disruption in the apparel industry, that its commitment to providing factoring solutions will aid business owners in need of creative and flexible non-bank approaches to solving their cashflow needs. Republic’s COO, Matt Begley added, “We were excited when we learned that Tae was available in the market, Tae has been on our list of top performers in the region for many years.” Adding to Matt’s comments, Republic’s President, Robert added, “Some of our best opportunities often come at inopportune times, but it just shows our commitment to the business we are building together, and it all starts with great people.”
Republic is dedicated to helping entrepreneurs throughout the country, with its focus on building out regional offices to better support the local entrepreneurs. Republic’s EVP, Western Regional Manager, Jason Carmona added, “I have known Tae a long time, I am really thrilled he has joined our California based team. Tae has a strong track record that supports our commitment to traditional factoring and supporting the apparel and consumer packaged goods space.”
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 June 8, 2020
When a West Coast privately owned apparel manufacturer sought funding for their 2020 summer orders, they choose Republic Business Credit to finance their supplier payments. Republic approved a flexible, scalable and growth orientated facility to supply large retailers with summer style fashion in anticipation of the reopening of stores. Republic provided credit protection on their receivables and concentration limits for approved customers giving the company the comfort to fulfil the purchase orders in the midst of difficult market conditions caused by Covid-19. The company CEO said, “We are excited about showcasing our summer fashion line in time for the reopening of retailers and wanted a factoring partner that could help us fulfil our initial purchase orders.” The Pandemic has caused postponements in order shipment dates and Republic will support the client in the event the current orders are delayed or postponed. Republic Business Credit provides manufacturers with the support to adapt or pivot as the needs of their customers evolve during the staggered reopening.
The company is a distributor of knitted and woven fabric into the apparel manufacturing community. The company typically finds itself selling into US apparel manufacturers across summer women casual fashion, ranging from skirts, jumpsuits, dresses and tops. The company finds its fabric being used across natural, relaxed and form-fitting California casual wear segment. The company is well-positioned for the post Covid-19 store re-openings as they had no debt entering the 2nd quarter of 2020. While the orders are scheduled to ship in June, the company wanted the confidence provided by Republic’s credit protection ensuring they would get paid for the goods no matter what happened over the summer.
Republic provided a $1.75m non-recourse factoring facility with credit protection and extended customer payment terms eligibility to a West coast based apparel importer. Republic’s funding will eliminate the cashflow gap from when their suppliers need to be paid and when they are paid 120 days later for the goods. The company is unsure what the fall season will 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 lending products will be even more necessary as states reopen in 2020.” He further added, “we are excited to help all small businesses on the front supply lines of getting summer goods in stores and returning closer to 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 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 25, 2020
Republic Business Credit partners with an industry expert to provide a scalable Asset-Based Loan for a plant-based products company
LOS ANGELES (PRWEB) MARCH 25, 2020 – When Republic Business Credit’s Jason Carmona, EVP, met with a natural food manufacturer at the Natural Expo West in 2019, they were in search of working capital to seed their accelerated growth prior to their next equity offering. Republic is a proud supporter of the natural food trade shows, including its regional associations, Naturally, in Chicago, Austin and intended expansion to Los Angeles. The total food and beverage market is nearly half a trillion dollars and growing each year, while 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, vegan, keto, paleo and plant-based categories.
The company provides several branded plant-based food and beverages to large national organic grocery stores, along with several regional and independent grocers throughout California. The companies revenues exceeded $12 million in 2019, with the aim to double revenues in 2020. The company was growing faster than its profits, cashflow negative and had about 6 months of runway left. The company sought a creative asset-based loan that would significantly extend their runway and that would bridge the cashflow gap, maintain their growth pace and increase the company’s value prior to their next round of equity financing. The company used Republic’s debt as non-dilutive cash to increase its valuation ahead of its next equity raise.
As the CEO told Republic shortly after closing, “This debt facility will not only increase the value of our company, but it will allow all of the founders to retain greater ownership of the company and maintain control through the next equity raise, without this debt facility, I could have lost control of the company.”
Republic provided a $4.5 million asset-based loan with no cashflow covenant requirements and a tangible net worth covenant it would only test after the first six months of the facility. Republic’s initial funding provided the founders with the path to continue growing their top-line revenue without the fear of running out of cash. Of the $4.5 million revolver, there was also an initial $1 million inventory sublimit to keep up with the ‘just in time’ demands of the national organic grocery providers.
Republic is excited about its growing portfolio of natural food and beverage companies. Jason Carmona, EVP, said, “Not only are we helping entrepreneurs grow their businesses, we are also passionate about helping a category that provides healthy and generally more sustainable food and beverages that don’t contain all of the preservatives we grew up with. As a Californian, I am proud that our team is helping the natural food industry grow.”
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.
ABOUT REPUBLIC BUSINESS CREDIT
Republic Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, non-recourse factoring, factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital.
Posted on March 23, 2020
Republic Business Credit works with a private equity group and turnaround consulting firm to refinance Contractor’s lender and provide restorative runway
CHICAGO (PRWEB) MARCH 23, 2020 – When a portfolio company of a Midwest-based private equity group began underperforming, they chose a partner that combined both the industry expertise and wherewithal to provide a complex working capital solution by connecting with Republic Business Credit. Republic always puts its people and relationships at the core of its mission, and those bonds forged the path forward to understanding the story and structuring a facility towards the future.
Republic was chosen by the sponsor and consultant due to its flexibility, creativity, experience and its reputation for approving its original term sheets. The private equity firm acquired the company several years before, but brought in the turnaround consulting firm once it realized the management team needed immediate support and long-term improvement. The turnaround consultant knew of Republic’s commitment to the corporate renewal of companies with its President, Robert Meyers, recently completing his year as President of the Midwest Chapter of the Turnaround Management Association.
The company provides several services to wireless carriers throughout the US as the demand for 5G radiates throughout the technology world. The company provides the contracting, electrical and tower upgrading expertise that is essential for the US to keep up with the rest of the world in the application of 5G. According to several sources, the Global 5G infrastructure market has grown from merely a $0.5 billion in 2016, to be on pace to exceed $23 billion by 2025 with some reports double or triple that number. Republic is proud to support companies that experience recoverable distress and need the right partner to support their future growth plans.
Republic provided a $3,650,000 ledgered line of credit with extended customer eligibility up to 120 days, a $750k Unbilled Receivables facility, along with a $350,000 equipment term loan secured by their equipment and real estate. Republic relied on the sponsors’ commitment, the consultants 13-week cashflow and its knowledge of the industry to structure the right facility for the communications provider. Robert Meyers, President of Republic, said, “It was great to see our leadership team dive headfirst with the equity sponsor and consultant to underwrite a creative solution.” Stewart Chesters, Republic’s CEO, added, “It is one of those deals you will remember for a long time, the cashflows were struggling during the underwriting phase, but our commitment to a client-first approach allowed us to work through it together with the sponsor.” Republic often works with growth-related companies, however, this growth story needed an extra dose of time and patience. Since the initial funding, the company has consistently outperformed its forecast as Republic’s partners promised it would.
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.
ABOUT REPUBLIC BUSINESS CREDIT
Republic Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, non-recourse factoring, factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital.
Posted on March 19, 2020
Republic Business Credit works with the Azadian Group and Change Capital to provide flexible growth capital during the coronavirus pandemic
LOS ANGELES (PRWEB) MARCH 19, 2020 – 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.
ABOUT REPUBLIC BUSINESS CREDIT:
Republic Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, non-recourse factoring, factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital.
Interested parties may contact Joanne Chesters at 504.262.8624 or email jochesters@republicbc.com.
ABOUT AZADIAN GROUP:
Founded in 2003, Azadian Group is a boutique private equity investor focused on distressed M&A opportunities in the lower middle market. Interested parties may contact: info@azadiangroup.com
ABOUT CHANGE CAPITAL:
Change Capital provides creative, flexible, and timely capital solutions to small and medium businesses across the country.
Change Capital’s solutions include:
- Interim working capital to improve a business’ financial condition in preparation for bank/non-bank financing
- Contingent capital availability to take advantage of preferential purchasing or investment opportunities, execute on large or unexpected customer contracts and purchase orders, accelerate growth and expansion opportunities, buyout equity partners, provide liquidity to private equity owners, etc.
- Bridges to 3rd party financing, M&A or other liquidity events
- Subordinated stretch pieces and over-advances in conjunction with senior institutional lenders
Interested parties may contact: info@change.capital
Posted on March 18, 2020
Republic Business Credit partners with a leading industry broker to factor an apparel manufacturing company to support their growth and supply chain challenges
LOS ANGELES (PRWEB) MARCH 18, 2020 – When an apparel manufacturer sought growth in 2020, they were recommended by a known expert in non-recourse factoring in the California apparel market the vote of confidence to utilize Republic Business Credit’s growing platform of solutions. Since Continental Business Credit became part of Republic in 2019, Republic continues to fund and support growth focused entrepreneurs using its platform of funding solutions. Whether the solution is a traditional non-recourse factoring facility, e-commerce facility, direct to consumer loan or asset based loan, Republic steps up to support Brands.
Republic partnered with a leading broker in the apparel community that wanted a known traditional player with a flexible client focused approach. While there are several options of course, he noticed Republic is always a featured contributor and advertiser in the California Apparel News along with industry events and tradeshows. The broker said, “While I have known of the Republic Business Credit team, as Republic isn’t a new name to the apparel factoring industry in LA, now with Continental combination, Republic is proving its commitment to Brands at a time when others are pausing or being much less creative”
The company provides Made in America private label clothing such as knit shirts and screen printed t-shirts through its wholesale strategy, while reserving its own brand for a direct to consumer only offering. The company saw a surge in growth over the past 12-18 months as the uncertainty of tariffs and trade deals puts is American based supply chain at a distinct advantage. While initially, the facility started as a factoring solution, Republic expects to add on an inventory loan in the coming months to support both the wholesale and direct to consumer sales growth.
Republic provided a $750,000 Non-Recourse Factoring Facility for the larger wholesale accounts as well as some collection only services for some of the boutique sales and house accounts. Republic’s initial funding provided the ability to deliver orders during the first quarter and buy additional raw materials for the upcoming spring and summer seasons. In a short few months since commencing their facility with Republic, the company is on pace to quadruple its revenue compared to the previous year. Their founder attributes it to Republic, “As a result of our increased confidence to buy raw materials, we are able to focus on growing our business.”
“Apparel and consumer goods manufacturers are experiencing the greatest amount of negative press of almost any industry at this moment, from tariffs to trade deals to coronavirus concerns”, says Robert Meyers, President of Republic. Matthew Begley, COO of Republic adds on, “We are proud to support the manufacturing community of Los Angeles, having supported all of its cycles for nearly 25 years and we will be here for another 25 years.” Republic supports brands through various cycles of their growth, increasing facility limits up to $10,000,000 as needed, including adding on inventory, seasonal overadvances or direct to consumer loans.
Republic Business Credit partners with brokers, 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 Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, non-recourse factoring, factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital.
Posted on March 12, 2020
Republic Business Credit partners with leading West Coast Private Equity group to aid in the leveraged buyout of a distressed food manufacturer with high growth potential
LOS ANGELES (PRWEB) MARCH 12, 2020 – When a private equity group needed a debt partner that combined industry knowledge with dynamic execution, they choose Republic Business Credit’s West Coast team to complete the leveraged buyout of the food manufacturer. Republic prides itself by supporting profitable, growth-orientated businesses in addition to distressed companies under its platform. Republic provides Asset Based Loans, E-Commerce & Direct to Consumer loans into growth companies, while favoring its Ledgered Line of Credit and Factoring solutions for challenged, distressed or bespoke situations. Republic expanded its ABL team last year, with the additions of Matthew Begley as Chief Operating Officer, and Jason Carmon as EVP, Western Regional Manager.
The facility was provided to a California based natural food manufacturing company. The company sells into Whole Foods, Sprouts and several boutique stores across California. The private equity sponsor originally acquired the company through a leveraged buyout of a distressed company. The product category, management team and significantly reduced price made it a rare opportunity to complement their portfolio of companies. Republic partnered with the equity sponsor to provide an asset-based loan in less than thirty days.
Republic Business Credit provided a $4.5 million Asset Based Loan with an accordion up to $7 million in order to support the company’s projected growth. In addition to the revolver, Republic structured a $3 million equipment term loan that leveraged their existing manufacturing equipment and a $1 million sub-limit for new capital expenditures. Republic’s COO, Matthew Begley says, “We are excited to partner with the management team and the private equity fund to support the manufacturers’ growth in the food space.”
Republic’s initial funding provided for the necessary runway to implement the full turnaround plan while reducing the size of the check the fund needed to close the transaction. After just a few months since commencing their facility with Republic, the company is on pace to be cashflow positive for all of 2020.
“Republic is a proud supporter of the manufacturing industry and relieved to see about 22,000 jobs were created per month in 2018, nearly 500,000 in the past 30 months alone according to a recent Forbes article”, says Robert Meyers, President of Republic, “Manufacturers often turn to Republic over the cumbersome SBA 504 or SBA 7A Loan process, ideally, if time permits the entrepreneur can even utilize both.” Republic designed its team, products and locations to support the largest number of smaller and medium-sized businesses in the US.
Republic Business Credit partners with private equity firms, 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 Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, non-recourse factoring, factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital.
Republic Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, non-recourse factoring, factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital.
Interested parties may contact Joanne Chesters at 504.262.8624 or email jochesters@republicbc.com.
Posted on December 11, 2019
Republic partnered with an investment bank to provide a ledgered receivables line of credit to support exponential growth
NEW ORLEANS (PRWEB) DECEMBER 11, 2019 – When a private equity owned, natural food manufacturing company sought their first debt facility, they chose Republic Business Credit “Republic” to feed their ambitious growth plans. Republic provided a flexible, covenant free working capital facility that will enable strategic raw material purchases to mirror customer demand. Republic partnered with a national investment banking firm that was hired by the client and their sponsor to obtain a line of credit. Despite many suitors, the client chose a ledgered receivables line instead of a traditional Asset Based Loan. The company is heavily investing present cashflow into their future growth, its CFO said, “We almost chose a traditional ABL Loan, but their covenants and restrictive borrowing base did not position our company for future success.” He further stated, “Republic was transparent with their legal documents, availability and provided immediate access to the owners of Republic to help close the facility inside of three weeks.”
Republic provided a scalable solution that aligned with its growth plans. The company manufacturers a natural whole grain with applications across the food supply chain and distributes the homegrown products into the wholesale and grocery space. Some customers prefer their grains to complement their own product development in the natural food space. The company partners with emerging and established brands to deliver a private labeled product from one of their affiliated manufacturing facilities. The company adds value to the entire food supply chain as they create end to end contract manufacturing. The private equity firm supported a few early acquisitions and provided the necessary startup capital. The PE firm wanted to utilize the co-founders technological application to address one of the largest markets, over $2+ trillion food industry according to the team at Plunkett Research. Republic continues to support food and natural food brands as we build our expertise in the industry.
Republic provided a $6.5 million Receivables Line of Credit facility with no covenants or cash flow requirements. Republic’s ongoing funding will be used for the purchase of raw materials, equipment and to invest in their distribution assets. The company is planning to increase their revenue by 300% in 2020 and see their first months of profitability. “The natural food industry is exploding with new brands and it is one of the most important developments to improving our overall health.” says Stewart Chesters, CEO of Republic. “We support several entrepreneurs in the food and natural food industries. It is a nice bonus when they are well-capitalized but it isn’t normally the case or required by us.” Republic designed its team and products to support smaller and medium-sized companies.
Republic Business Credit provides flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the Association of Corporate Growth, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides receivables finance, factoring and asset-based facilities, including ABL, receivables purchase lines of credit, inventory, equipment and purchase order lines. Since its founding in 2011, Republic Business Credit has provided over $4 billion in fast, flexible working capital.
Posted on December 9, 2019
Republic partnered with a turnaround consulting firm to provide a receivables line of credit to help support the trucking firm’s growth
CHICAGO (PRWEB) DECEMBER 09, 2019 – When an Intermodal trucking company needed to refinance its existing line of credit, they sought out Republic Business Credit (“Republic”) to meet their growth needs. Republic provided a 92% advance rate to improve their liquidity and enable the company to remain current on its fuel, tax and payroll needs. Republic partnered with a leading Midwest-based turnaround consulting firm that was hired by a large bank to refinance the line of credit while the bank maintained the treasury management services. In 120 days, the turnaround firm increased its liquidity and improved cashflow. Republic provided a creative and scalable structure to aid in the future growth plans of the client.
The company provides intermodal and over the road transportation services for railroad, manufacturing and distribution companies located throughout the country. The company provides both in transit rail services and long-distance hauling. So far in 2019, twice as many carriers have failed than in all of 2018 due to decreasing prices and rising supply costs. Insurance payments were responsible for the failure of Denver based HVH Transportation, Inc. according to Transport Topics article in September. Republic was chosen as a partner to provide additional liquidity along with the flexibility for short term over-advances should that type of payment ever be required. Republic’s facility will enable the company to take advantage of growth opportunities as carriers continue to consolidate across the transportation industry.
Republic provided a $1.5 million Receivables Line of Credit facility with no covenants or cash flow requirements. Republic’s initial funding fully repaid the existing line of credit facility and opened with more than $250k of additional availability. In a short few months since commencing their facility with Republic, the company is on pace to increase their revenue and improve their profitability. Their CEO attributes it to Republic, “As a result of our increased confidence to meet our fuel and payroll obligations, we are able to take care of our team while growing our business.”
“Transportation companies are the lifeblood of America and one of the leading economic indicators. Republic is proud to support entrepreneurs,” said Robert Meyers, President of Republic. “We have several customers that support the supply chains of manufacturing, railway, automotive, energy, furniture and food industries.” According to the Small Business Administration of the U.S. government, small businesses make up 99.7% of the US employer firms. Republic designed its team and products to support smaller and medium-sized companies.
Republic Business Credit provides flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the Association of Corporate Growth, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides receivables finance, factoring and asset-based facilities, including ABL, receivables purchase lines of credit, inventory, equipment and purchase order lines. Since its founding in 2011, Republic Business Credit has provided over $4 billion in fast, flexible working capital.