Republic Business Credit Provides $6.5 Million Asset-Based Loan for Food Manufacturing Company
August 9, 2023
August 9, 2023
New Orleans, LA –
When a Gulf Coast-based second-generation food manufacturing company needed more support during seasonal growth periods, the company’s commercial banker sought a better partner for a line of credit that would allow the referring banker to maintain treasury management. Republic Business Credit stepped up to provide a $6.5 million asset-based loan with a seasonal uplift.
The food manufacturing company provides food, packaging and distribution services to grocery stores, schools, hospitals and commercial customers located throughout the Gulf region.
“We supply wholesale restaurant equipment and other products to our growing customer base, and their needs can ebb and flow depending on the season,” the food manufacturing company president said. “It was important to us to find a confident bank relationship. Republic stepped up and partnered with us in areas where we needed flexibility.”
Republic extended a $6.5 million asset-based loan that provided availability on the food distributor’s accounts receivables and inventory. The facility provided for a seasonal uplift and significantly more availability during the ramp up and low season period. Not only was Republic able to provide a dynamic ABL loan, but the referred commercial bank was able to retain all of the treasury services and keep the customer.
“We truly enjoy partnering with entrepreneurial businesses that have strong foundational community support and provide an important service,” Republic President Robert Meyers said. Republic’s SVP, Leigh Guglielmo added “This company provides food and products to a vital industry throughout the Gulf Coast that includes schools in the region, ensuring kids are protected against food insecurity.”
Republic’s food clients work in the confectionary, snack, condiment, sauce, ingredient, grain, bakery, desserts, cakes, canned, smoked, frozen, and dried industries. Beverage clients include soft drinks, juices, coffee, tea and other instant beverages. In 2022, Republic was a proud sponsor of the Houston Food Bank.
“Republic is proud to support the food manufacturing company today and in the future as acquisition opportunities present themselves and funding needs grow toward $20 million,” Meyers added.
“Our unique lending products provide us the ability to truly get to know the businesses with whom we partner, whether they are private equity supported or entrepreneurially owned,” Republic CEO Stewart Chesters said. “We’re excited to support the growth ambitions of our new and lasting clients.”