Wholesale Lumber Distributor
Due to the downturn in housing starts during last recession, the Company incurred significant losses and tripped several covenants under their traditional bank working capital line. The bank gave them a tight timeline to find alternate financing. We were able to provide an Accounts Receivable line of credit and an Inventory facility. We were also able to close the deal within a few weeks of initial contact with the Company in order to meet their payoff deadline with the bank.
Our flexibility of a no covenant credit facility allowed the Company to complete and implement its turnaround plan. Within a two-year period, the Company was able to reduce its workforce from 300 to fewer than 200 while doubling its revenues. In order to facilitate the turnaround plan and support this dramatic sales growth, we provided several increases to the line of credit. Within two and one half years of coming to us, the Company was able to transition back to a standard banking relationship.