Posted on February 27, 2024
CHICAGO –
When Modern Sprout outgrew its current lender, the Chicago-based Garden design shop and manufacturer planted new roots with Republic Business Credit to secure a $5 million asset-based loan at the close of 2023. Modern Sprout is a fast-growing innovator in the “grow-your-own” movement, combining hydroponic growing technology with sleek, stylish and sustainable indoor and outdoor garden solutions.
Its product portfolio consists of grow kits for everything from kitchen herbs to natural pet treats. They also offer stylish grow lights, gift-ready seed starting kits, plant accessories and more. Modern Sprout sells direct-to-consumer and has partnerships with a range of businesses from standalone neighborhood boutiques to national retailers, such as Target and Kohls.
In 2023, Modern Sprout learned that its current lending partner would not be able to support the company’s future growth plans. It needed a new partner that could not only accelerate its borrowing capabilities, but truly understand the seasonal needs of an omnichannel, founder-led business. Republic was that partner, stepping up with an ABL facility that made additional inventory funding possible during Modern Sprout’s low season.
Modern Sprout was connected to Republic by several Midwest referral sources due to its leading reputation across the food, beverage, apparel and consumer packaged goods industries. Those introductions came from a well-known national consulting firm, investment bank and regional commercial bank that were all looking to find ways to support Modern Sprout.
Republic provided a $5 million asset-based loan that provided additional availability on their inventory and e-commerce sales during their seasonal ramp periods.
“Republic’s experience in the CPG industry and strong grasp of e-commerce channels made us an excellent partner for Modern Sprout,” said Eric Dorner, Republic’s VP in its Chicago office. “We are excited to support the continued growth of this company that has reinvented its industry and made at-home gardening more accessible to every consumer.”
“It is our mission to connect people and plants through our unique products and solutions,” said Sarah Burrows, who co-founded Modern Sprout with her husband in 2013. “That is an ambitious purpose that requires us to grow quickly and be adaptable to the market. Republic’s services have allowed us not only to succeed, but to exceed our goals.”
Republic President Robert Meyers said, “We were so impressed with the entire Modern Sprout team, and it is great when we can provide a working capital facility to people who are truly passionate about their work. The team, including Sarah Burrows, Nick Behr, Kim Chisholm, Allison Hammer, Danielle Kurtz, Chris Todd, Tony Wesley and Jessica Amata, provided us with confidence in the long-term success of this founder-led company in Chicago’s West Loop.”
In 2024, Modern Sprout plans to expand into additional departments within Target, introduce new products and grow its partnerships with World Market and Container Store.
Posted on February 20, 2024
LOS ANGELES –
When a California-based fabric manufacturer sought a factoring partner that could fully approve its customers, they believed that Republic Business Credit would help safely grow their business.
The company, established in 2020, is the most recent endeavor launched by another one of Republic’s long-term clients in the apparel industry. In fact, Republic had previously provided a factoring facility to the brands’ parent company, which gave its leaders confidence that this would be another trustworthy partnership.
The company did not require a factoring partner throughout the pandemic because of its strong customer relationships and growing e-commerce platform. However, as the current retail environment continues to shift due to inflation, higher costs and inconsistent consumer demand, the company wanted the comfort and safety that comes with shipping to credit approved retailers. It was especially important to get approval on some of its larger retailers, such as Burlington Coat Factory & Ross Stores that have been integral to the company’s proven success.
“It has given us confidence to continue growing and expanding our business, knowing that we will be able to collect our wholesale receivables from large retailers,” said the company’s founder. “Republic’s understanding of the apparel industry, combined with its responsive client management team have made this an incredibly effective partnership.”
Republic provided a non-borrowing traditional factoring facility to help reduce the company’s payment risk. Republic gave the company comfort that its shipments would be paid for in full, so the company could focus on growing its new brand.
“I have been working with companies in the apparel space for years,” said Republic SVP, Business Development for the California office, Tae Chung, who managed the deal. “Companies often need the flexibility of a factoring facility and reduced credit risk to stay competitive in the market. We are proud to support the company in this new partnership and look forward to helping them further advance.”
Republic was able to approve 100% of the company’s customers and serve as a trusted advisor through a challenging time in the market.
“We are always excited when our existing, successful relationships with clients lead us to new opportunities to work with businesses seeking similar solutions,” said Republic’s COO, Matthew Begley. “We are confident that our facility will help this company reach its goals and continue to be a dynamic and competitive player in the apparel space.”
Traditional Factoring is often used by businesses in specific industries, such as apparel companies, to reduce payment risk. Republic has long-term partnerships with many industry leaders across the country to provide that security and help their businesses to succeed.
Posted on February 11, 2024
LOS ANGELES –
When a swimwear manufacturer outgrew its lender and sought a larger factoring facility, it partnered with Republic Business Credit. Republic was the ideal partner, providing the company with a larger factoring facility and more customer credit support than its previous factor, ahead of an oversold spring season.
The company is an apparel manufacturer and wholesaler that specializes in swimwear. It is brand historically recognized for its fashionable women’s swimwear while also offering loungewear, sweaters and other swim apparel and accessories.
The company was determined to grow into new markets in 2024. Partnering with Republic allowed the company to access a $4 million factoring facility and increase customer approvals. Republic provided a facility to support spring shipments into major retailers.
Tae Chung, Republic’s Senior Vice President, California, helped facilitate the deal and already had a long-tenured relationship with the swimwear manufacturer.
“Having a strong previous relationship with the partner made this a seamless process for both parties,” Chung said. “For many parts of the country, the spring and summer seasons are fast-approaching, and the company needed to be ready.”
Republic Chief Operating Officer Matthew Begley said the swimwear company will be able to grow and meet demand as the warmer weather approaches, allowing the business “to focus on the nuts and bolts of day-to-day demands without worrying about the financing.”
Because of its partnership with Republic, the swimwear company shipped more than 10 million orders for the upcoming spring swim season.
Posted on February 6, 2024
CHICAGO –
In January 2024, Republic Business Credit financed a $9.0 million revolver and a $3.5 million real estate term loan for a family-owned, Illinois-based food manufacturing company.
The company, a specialty food manufacturer and distributor, sells its products to a variety of restaurants, specialty grocery stores and retailers throughout the country. It has been in business for more than 50 years and continues to grow, despite the various food supply chain challenges that have characterized the past few years in particular.
In 2023, the company experienced some minor cashflow struggles due to the rising costs of meat and supply chain issues that have affected so many businesses post-covid. Combined with slowing sales, attributable to a decrease in consumer spending across their categories, the company’s incumbent bank sought to refinance its loan after a more than 20-year relationship.
The company engaged KFK Advisors Managing Partner Kevin Kelly. Mr. Kelly is an established financial advisor and turnaround professional who helped the company with identifying refinancing options and sourcing competitive proposals. He referred the business owners to Republic as a trusted partner and a middle market asset-based lender. The process provided for a timely closing shortly after they had returned to positive performance.
“This company was demonstrating that it had the ability not only to recover, but to grow and retain its footing as an industry leader despite setbacks,” said Kelly. “I trusted Republic Business Credit to support the business and provide necessary liquidity after a challenging year.”
The company was tracking ahead of its turnaround plan and sought the right lender to support its success and plan for growth. Republic was proud to step in and be that partner, providing a $9 million asset-based revolver line of credit and $3.5 million real estate term loan that took into account the proforma performance of the business over last year.
Republic President Robert Myers said, “Our ability to underwrite, understand and correctly structure the proforma turnaround business plan makes us a great partner for middle market and lower middle market businesses across the food and beverage industry.”
“We were encouraged by their ability to increase sales while reducing overhead costs in a tough, competitive environment,” said Republic Senior Vice President, Business Development, William Kemp. “This company was ahead of plan throughout the underwriting process, which gave us even more confidence in its management team and turnaround consultant. We look forward to supporting their continued growth.”
Republic’s loan, totaling $12.5 million, provided not only the capital to refinance the current lender, but provided significantly more availability and the opportunity to fund an equity distribution. This provided necessary working capital support, providing the confidence to maintain its leadership within the market. With the increased resources and Republic’s support, the company is poised to exceed its 2024 goals.
“Republic is always proud to support entrepreneurial, family-owned businesses to emerge from recoverable distress,” Republic President Robert Meyers said. “We were glad that our lending solution enabled this company get back to focusing on the business, rather than the finances.”
Posted on October 16, 2023
CHICAGO –
Chicago-based private equity firm, Sterling Partners, tapped Republic Business Credit to help support the continued growth of one of Sterling’s portfolio companies, Fancy Sprinkles. Republic provided an E-Commerce asset-based line of credit that helped the company prepare for its national rollout with one of its largest retailers, while supporting its overall online growth strategy.
Fancy Sprinkles is an edible arts company on a mission to completely revolutionize an outdated edible art and baking industry, one bite—or sip—at a time. Fancy Sprinkles is at the forefront of food-based pop culture trends and creativity, producing innovative products and decorating kits for both food and beverages. Its most popular products include sprinkles, candy melts, edible glitters and coloring gels.
Fancy Sprinkles has previously been featured on The Today Show, BuzzFeed and Bon Appétit for its unique confectionary products.
The asset-based loan Republic provided had an accordion feature of up to $6 million, which leveraged Fancy Sprinkles’ inventory and receivables across its e-commerce and wholesale business. Fancy Sprinkles is experiencing rapid growth with key retailers and sought a scalable working capital facility to expand inventory ahead of its upcoming national rollout.
Republic was impressed with the philosophy, culture and partnership mindset of the Sterling team, starting with its Chairman and Co-Founder, Steven Taslitz and Vice President, Courtney Altman.
“We are thankful for Republic’s support and believe this partnership will generate continued success for Fancy Sprinkles,” said Taslitz.
“This partnership will enable Fancy Sprinkles to grow its brand and manage rising demand,” said Altman, who played a major role in the deal.
Fancy Sprinkles CEO Kiley Anderson shared, “We appreciate the line of credit extended by Republic and are confident that this newfound relationship will help us to reach new goals and milestones as a company.”
Eric Dorner, VP, Business Development, at Republic was a proponent of the initial partnership between the companies. “It was exciting to close this first deal with Sterling Partners, especially given their incredible reputation investing across the consumer-packaged goods industry, of which we continue to build an incredible portfolio of brands,” Dorner shared.
“It is exciting to partner with brands that are well-supported by their equity partners and combine Sterling’s forty-plus years of experience with entrepreneurial-minded capital,” said Republic President, Robert Meyers.
Posted on October 2, 2023
LOS ANGELES –
When an Oregon-based private equity-owned metal injection molding company sought a new partner to replace their bank line of credit, they chose Republic Business Credit. Republic extended a $3.5 million asset-based loan revolver with an additional $500k equipment term loan.
The company is a global leader in metal injection molding techniques, offering a range of services, such as tooling, finishing and product design. Metal injection molding is a metalworking technique used to create net shape, complex metal parts in large quantities. It finds widespread use across industries, including electronics, automotive, medical, and industrial sectors.
The company has been profitable for years but with a heavily export-based model, they were vulnerable to shifts in the market and changes in major buyers’ needs. It was also in search of a new lender that could better meet its credit facility and international market share. Republic was that partner.
Republic was able to close this agreement with the client within just six weeks of an executed letter of intent. Republic’s speed, experience and products made it the perfect partner for this company.
The company was able to return to profitability and is projected to continue growing profitability over the next 12 months.
“This is an excellent example of how asset-based loans can help a historically stable company regain its footing after an unexpected disruption,” said Republic Senior Vice President and Underwriting Manager, Brian Daray. “We are thrilled to have helped this industry-leading company reach their goals quickly and efficiently.”
Republic was also suited to meet the company’s needs on international receivables beyond what is industry standard and provide sufficient, forward-looking availability and covenants.
“As an asset-based lender, we are able to be nimble to meet the needs of our clients and help them find a solution that works best for their business,” said Republic President, Robert Meyers. “We are proud to have helped this company recover and set new goals for its future.”
Republic partners with private equity, independent sponsors and family offices across the county to support their portfolio companies.
Posted on September 26, 2023
CHICAGO –
When an independent children’s book publisher needed to find a lender to support their turnaround plan, it sought a partner that understood the publishing industry and would provide the working capital support to make timely royalty payments and fund payroll, even when key customer payments were delayed due to extended payment terms. That partner was Republic Business Credit, which extended a $1 million factoring facility to the company.
The Illinois-based company, which has been in business for more than 100 years, publishes middle grade fiction, picture books and young adult novels. DEI is at the core of this company’s mission, and it is proud to publish books that promote empathy, inclusion and personal responsibility in the next generation. The company’s customers include the trade, education and library industries.
“We are grateful to have Republic’s financial support for the seasonal liquidity needs in our industry,” said, its CEO. “This facility will help us fill crucial gaps in cashflow to not only stabilize payment cycles, but also reach goals we are confident we can achieve with this funding.”
While the company was historically profitable, it began facing industry-wide difficulties that led to a decline in revenue. To compensate for the unexpected shift in profitability, the company successfully sold one of its business lines. However, after the sale, its previous bank was no longer willing to support the company.
The company was still required to make significant, semi-annual royalty payments, even with payments coming in slowly from key customers. The company had utilized the expertise of certified turnaround and restructuring consultant, KFK Advisors, to develop its turnaround and restructuring plan. KFK’s managing partner and established turnaround professional, Kevin Kelly, referred the company to Republic.
Republic’s funding provided the liquidity solution for the royalty payments, in addition to working capital funding for the company as they are paid up to 120 days after sale by select customers. Republic also provided an 85% advance rate. This funding solution ultimately allows the company to focus on its business and will support its turnaround plan in 2023 and 2024.
“We are confident our recourse factoring facility will help this business by providing liquidity to manage their operations,” said Republic’s SVP, William Kemp. “We are happy to help an independently-operated business in the Midwest that provides important educational materials to so many key age groups.”
“Turnaround consultants, Kevin in particular, allow us to partner with companies that we might not otherwise be able to support,” said Robert Meyers, Republic’s President. He added, “Kevin Kelly is a great advocate for his clients, understands their businesses and tends to help across their various financial, accounting, operational and people development needs.”
Republic is a proud sponsor of the Turnaround Management Association (TMA), and partners with turnaround consultants to serve businesses experiencing recoverable distress. Republic’s President, Robert Meyers, was the President of the TMA’s Chicago/Midwest Chapter in 2019 and William Kemp has been a board member and volunteer for more than ten years in both the Houston and Midwest Chapters of the TMA.
Posted on August 30, 2023
NEW ORLEANS –
When a California-based solar installation company sought a line of credit to help fund its growth, the company partnered with Republic Business Credit. Republic provided an asset-based line of credit on accounts receivable and inventory to the company seeking to expand its footprint into new territories.
The company is a vertically integrated solar provider that performs the design, installation, and maintenance of residential solar energy systems in California, Florida and Arizona.
Recently, the trend of installing solar panels on homes has surged, especially in warmer states, as it provides a manner of reducing residential electricity bills. According to the Solar Energy Industries Association (SEIA), the residential solar market experienced its sixth consecutive record year in 2022, as annual residential solar PV installations have continued to increase.
Due to the rapid growth in the solar industry, the California solar provider sought a flexible partner to provide a line of credit in this high growth atmosphere. Republic was the answer, as it provided the company with a $6 million total credit facility within a few months.
Republic was introduced to the client by an investment bank that wanted to assist the company but could not accommodate its unique needs and rapid growth. This was the first financing facility the company sought and received, and the company’s leadership team wanted a lender who understood their industry and ambitions.
Republic was able to provide expertise in both the solar industry and financing options that suited the company’s goals. Jason Carmona, Executive Vice President, Western Regional Manager, at Republic has a strong background in underwriting and the solar industry, making him the ideal partner for the company.
“Our team was uniquely positioned to help this company,” Carmona said. “Having previous experience with an employer that understood solar industry finances, I understood what this company needed. Because we offer tailored solutions, we were able to step in and provide different layers of support.”
“We are grateful for Republic’s managers who understand the unique financial circumstances of the solar industry,” said the California company’s CEO. “We are motivated to grow with the confidence their line of credit has provided us.”
Posted on August 28, 2023
NEW ORLEANS –
Republic Business Credit recently partnered with an Alabama-based business specializing in aerial maintenance and oversight for utility and energy companies. The company sought to obtain more working capital than its previous bank could accommodate, which Republic was able to provide.
The company is an accredited woman-owned business with a long-standing history in the electrical power industry. It provides a specialized menu of services, including helicopter aerial support, helicopter audits, helicopter oversight and engineering support. For example, the company provides helicopters to assist with heavy-lift operations associated with the construction of transmission towers and lines.
It houses several other subsidiary businesses supporting additional services within the powerline industry, including line construction, maintenance and inspection, as well as 24/7 storm response.
Republic was introduced to the opportunity through its parent company, Renasant Bank, when the aerial company was seeking out a new lending solution.
“Republic was able to quickly address the client’s working capital needs,” said Bill Keller, Senior Vice President, Manager Commercial Lending for Shelby County, Alabama at Renasant Bank. “We were able to close within a week of our initial conversation with the client, which was key to their successful refinancing.”
Republic provided the company with a $3,000,000 factoring solution to refinance its incumbent bank and provide additional growth capital.
“We were able to act fast and provide our client with a factoring solution to meet their goals in a timeframe that outpaces traditional lenders,” said Republic President, Robert Meyers. “Our team was proud to help our client and provide them with solutions their previous bank could not.”
Republic provided extended eligibility up to 120 days for the large utility company, while most competitors limit eligibility to 90 days. Republic provided a 90% advanced rate on the receivables.
“This is a perfect example of Republic providing a necessary working capital facility to a woman-owned small business that needed more capital than the bank was able to provide,” said Republic CEO, Stewart Chesters. “Our parent company, Renasant, was able to capture the entire treasury management operation from start to finish.”
Posted on August 23, 2023
HOUSTON, TEXAS –
When a Texas-based beverage company was searching for capital to expand its operations, the company selected Republic Business Credit as its partner. Republic provided a credit facility, totaling $2.5 million, which will supply the energy drink brand with the resources for future growth.
This Texas-based energy beverage and lifestyle brand was founded by a family of athletes with the goal to provide a health-forward energy product to consumers. It is one of the first Black-owned energy drink companies on the market.
The sports drink is created with a blend of cordyceps mushrooms and natural flavors, which combine to help combat the jittery feelings associated with energy drinks. The innovative formula is vegan and non-GMO, while delivering electrolytes, essential vitamins and BCAAs.
The company offers a variety of drink flavors, including Tropical Berry, Candy, Blueberry Lemonade, Peach Pineapple, Watermelon Fruit Punch, Gummy Bear, Mango Passion Fruit, and Acai Mixed Berry.
Republic provided a $2.5 million Ledgered Line of Credit and a $250,000 call facility to help accelerate the company’s ability to fulfill the backlog of purchase orders from regional sports and nutrition retailers across the West Coast.
Republic President Robert Meyers said, “We are very excited to partner with a company that is innovative and focused on growth. We are grateful to play a role in the story of this company and look forward to supporting its goals.”
Leigh Guglielmo, SVP, Business Development, New Orleans, at Republic, was also confident about the prospects of the deal. “We are thrilled to partner with a diverse company that’s already shown so much promise,” said Guglielmo. “We believe in the vision of this company and are excited to provide this line of credit to bolster its growth.”
Posted on August 21, 2023
LOS ANGELES –
A women-owned, Los Angeles-based women’s apparel manufacturing company recently sought funding to meet building demand. They chose Republic Business Credit to support their growth and Republic provided a $1,000,000 traditional factoring facility to double their sales in the first half of 2023.
“We are excited to have a factoring partner that can grow with our brand and help us to share our fashion line with more consumers,” said the apparel company’s CEO.
“Our factoring, credit protection and collections products are tailor-made for growing brands,” said Republic Senior Vice President Business, Tae Chung. “We are proud to support so many great brands across the women’s apparel industry, especially those that are woman-owned.”
According to Market Watch, the Streetwear Market, “is expected to expand at a [compound annual growth rate] of 3.52% during the forecast period, reaching USD 230877.25 million by 2028.”
Meeting the rise in demand for these products, the company specializes in selling a variety of women’s streetwear products, including t-shirts, sweatshirts and joggers. The company is focused on merging luxury with street style, providing comfort to its customers without sacrificing fashion.
“As a promising area of growth in the fashion industry, it is an exciting time to invest in streetwear,” said Republic President, Robert Meyers. “It is a great opportunity to support a women-owned business in the growing, popular industry of women’s fashion.”
The company was founded in 2012 and sells women’s clothing through their own line and private labels. It currently employs 15 people, and its top customers are Fashion Nova and Windsor Fashions.
“It is encouraging to see rapid growth in the US-based apparel manufacturing industry,” said Republic Chief Operating Officer, Matthew Begley. “We are excited to add this company to our growing portfolio of apparel companies we have helped to grow through factoring and lending solutions.”
Republic provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the US.
Posted on August 9, 2023
Chicago, IL –
Republic Business Credit is proud to share a unique accomplishment reached by its talented team of young finance professionals: Two of Republic’s rising stars serve as chapter presidents within The Secured Finance Network.
Eric Dorner, vice president of business development, Chicago, and William Kemp, senior vice president of business development, Houston, both hold the roles of chapter president in their respective cities for SFNet, the premier national association for all organizations and professionals working in secured finance. The network includes nearly 300 member companies and a 20,000-person active community with 22 chapters throughout the United States.
“We have a lot to be proud of at Republic as we grow and help our clients adapt to an ever-changing economic landscape. But this accomplishment feels special and personal in that it affirms what I see every day — remarkable talent on the Republic team that is recognized by our industry, our clients and our peers,” Republic President Robert Meyers said.
Dorner and Kemp both serve as 2023 chapter presidents within SFNet, helping members network, building chapter sponsorships and volunteer opportunities, and serving as a resource for educational opportunities and professional development in the Asset-based lending field. The Midwest chapter overseen by Dorner aims for one to two events per month, some of which raise money for charitable causes. The chapter recently partnered with a therapeutic horse organization that helps children and military veterans deal with challenges and stress in a positive way.
“We are currently supporting Heaven’s Gait Ranch based in Wisconsin, a nonprofit organization that provides therapeutic services to individuals with special needs and veterans with disabilities,” Dorner said.
Kemp’s chapter in Houston has focused on professional development sessions and outings that stimulate networking and keep members up to date on developments in the field. Driving member and sponsorship value of chapter activities is an important function of the group under Kemp’s leadership.
“It’s important to demonstrate the value of our organization to our members and the finance community, and I think we do a good job of that,” Kemp said. “Networking has been tough since the pandemic. We’re here to serve as a support system for our members who are in the trenches, to help them get more established in their careers and to provide a community of like-minded professionals.”
Building community through SFNet’s active chapter organizations can mean webinars that are enlightening and informational — and it can mean wiffle ball tournaments that allow for more social interactions. Both are critical to the “rising tide lifts all boats” philosophy within the industry, Dorner said.
“We have to be creative and plan events that allow colleagues to get to know each other, as well as facilitate deal flow conversation,” he said. “SFNet has given a lot to me, helped me advance in my career and provided more exposure for me in our market.”
“A strong organization benefits everyone,” Kemp agreed. “Sure, we want to win every deal, but we also want our industry to remain strong and prepared for any uncertainty heading our way.”
As a leader in the Houston chapter, Kemp is also connected to his community. He volunteers at the Houston Livestock and Rodeo Show — and embraces the mandatory cowboy boots required of volunteers. The rodeo is a massive annual celebration of music, food, games and agriculture.
Kemp represents the Texas market for Republic and brings more than 10 years of asset-based lending and factoring experience. He is a graduate of the University of Michigan and was awarded “Emerging Leader” by the Turnaround Management Association Midwest Chapter in 2017. He serves on the ACG Houston Young Professionals Committee.
Dorner represents the Midwest region for Republic. He brings more than 10 years of experience in the field and serves on the sponsorship committee for the Turnaround Management Association Midwest Chapter. He graduated from Bradley University in Peoria and was awarded “Emerging Leader” by the Midwest chapter of the TMA in 2020. He volunteers with the Alzheimer’s association of Illinois and has raised money for PAWS through marathon running.
