Allen Frederic, Stewart Chesters Launch Republic Business Credit LLC to Serve Clients Nationwide
February 11, 2011
February 11, 2011
Immediate Focus Is to Provide Working Capital for Rapidly Growing, Turnaround and Start-Up Companies So They Can Take Advantage of Growth Opportunities
NEW ORLEANS, LA – (BUSINESS WIRE) – Two nationally recognized factoring / receivables finance professionals have launched New Orleans-headquartered Republic Business Credit, LLC, to provide companies in the Gulf South region and across the country with the liquidity they need to capitalize on growth opportunities presented by a recovering economy and thereby build their businesses.
“We’re excited to be headquartered in New Orleans. We believe the Gulf South region will have a strong recovery. We want to use our funding lines to support businesses here so they can take advantage of upcoming opportunities to grow their companies and create the jobs the region needs.”
The goal of Allen E. Frederic, Jr., Republic Business Credit’s chief executive officer, and Stewart Chesters, chief operating officer, is to build a working capital finance operation serving clients nationwide that is recognized as the most client-focused businesses of its kind in the country. As its home market, Louisiana is a focus for Republic, but the company also has positioned industry-leading regional sales managers, Brian Albach in Chicago and David Montenegro in Houston to serve clients in the Midwest and Southwest while financing clients across the U.S. The company already has closed several transactions.
Republic’s strategy is to provide working capital for rapidly growing, turnaround and start-up companies that have annual sales up to $60 million and facility needs of $50,000 to $5 million by utilizing factoring and receivables finance. It is targeting a variety of industries, including energy, oil and gas, manufacturing, temporary staffing, distribution, transportation, high-tech, safety and security, government contracting, marine, printing, janitorial and others.
Earlier this year, Republic closed on equity financing from two large institutional investors for a total of $30 million in capital that will allow it to begin serving clients immediately. In addition, the company expects to close on the first tranche of senior debt in mid-February, a facility starting at $30 million that will provide Republic Business Credit with additional liquidity to extend its outreach to new markets and clients.
“The companies that can benefit from our services are those that sell their goods and services to credit-worthy entities,” Frederic said. “Our clients have to pay their employees today, meet immediate operating expenses and invest in growing their businesses, while their own customers could pay invoices in 30 to 45 days, sometimes longer, therefore creating a funding gap. We can offer advances against accounts receivable to bridge these funding gaps so our clients can meet their obligations and continue to grow.”
While many banks are strapped with problem loans these days and are not lending, Chesters pointed out that Republic Business Credit is not a bank but a team of entrepreneurs looking to provide the cash to support clients that have the same can-do philosophy. “We make decisions based on our real-world experience rather than a credit report. Republic is off to a fresh start with significant capital and liquidity.
“We’re excited to be headquartered in New Orleans. We believe the Gulf South region will have a strong recovery. We want to use our funding lines to support businesses here so they can take advantage of upcoming opportunities to grow their companies and create the jobs the region needs.” Chesters said that in addition to helping businesses in the New Orleans area and across the Gulf South region, Republic is well-placed to support growing enterprises throughout the country through its Chicago and Houston regional offices and its receivables line and invoice factoring products.
Frederic pointed out that the principles of Republic will drive its success.
“We pledge professionalism, responsiveness, access to senior decision-makers, quality customer service and flexibility,” he said. “Our approach is to deliver the kind of value that our clients expect and deserve, putting the customer first.”
With a staff of 12, Republic expects to have a work force of approximately 40 by the end of the year and a portfolio of funding facilities with small to medium-sized business across its footprint totaling more than $50 million. Republic also will look for opportunities to purchase participations from other factors and will consider acquiring companies and portfolios in the working capital arena where those transactions are financially or geographically compelling.
Frederic is a 38-year banking veteran. He also founded Gulf Coast Business Credit (GCBC), the factoring division of New Orleans-based Gulf Coast Bank, and served as its CEO for the past 11 years. Under his leadership, GCBC grew to become one of the 20 largest independent factoring operations in the U.S. For further information on Frederic visit http://republicbc.com/about/
Chesters has worked in Chicago since 2004, most recently as CEO of the North American division of Bibby Financial Services, one of the world’s largest global factoring companies and part of the 200-year-old Bibby Line Group. For further information on Chesters visit http://republicbc.com/about/
Milestone Advisors, LLC, of Washington, D.C., and Pontchartrain Capital, LLC, of New Orleans advised Republic Business Credit, LLC, on its formation and capital-raising process.
Interested parties may contact Republic Business Credit, LLC, at 1-866-722-4987 or visit www.republicbc.com.