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.”

The post Republic Business Credit Provides $6.5 Million Asset-Based Loan for Food Manufacturing Company appeared first on Republic Business Credit.

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.

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