Entrepreneur Growth Capital Provides $1.8MM ABL to Building Material Distributor

Entrepreneur Growth Capital (EGC) provided a $1.8 million asset based line of credit to a New Jersey-based distributor of building materials.

The 115-year-old company had covenant compliance issues with its long-standing bank. EGC provided an accounts receivable and inventory revolver to meet the company’s cash flow needs and pay off the bank. Because the closing occurred during the company’s slow season, EGC also provided a stretch piece to get them “over the hump.”

“Like many clients and prospective clients, this company went through a tough period over the last year,” Robert Abraham, vice president of EGC, said. “They did what they had to do to get through and EGC expects them to rebound with the economy … and a little lender flexibility definitely helps.”