Iron Horse Closes $3MM Inventory LOC to Ag Equipment and Parts Manufacturer and Distributor

Iron Horse Credit (IHC), a stand-alone inventory lender, announced the closing of a $3 million stand-alone inventory revolving line of credit to a manufacturer and distributor of agricultural equipment, parts and supplies.  

The client was introduced to Iron Horse Credit by a referral partner who trusted IHC’s ability to execute and understand the complexity of the transaction. The company is a family-owned business with over 40 years in the space. The company has established itself as one of the most recognizable brand names within the industry with a reputation for producing quality and innovative equipment. 

After investing in product expansion, the company experienced a decline in sales primarily driven by the sector’s economic decline. The company was successful at reducing excess capacity and overhead to increase profitability but were ultimately forced to file for bankruptcy protection by their former lender. After the company exited bankruptcy through DIP finance, IHC was engaged to replace its current facility to a more traditional revolving line of credit. IHC’s inventory facility not only reduced the company’s high interest expense but also provided additional working capital to support its operations.

“We are happy to have helped this family-owned business through one of their most challenging times in its 40-year history,” Commented Cesar Silva, vice president of Business Development. “We look forward to a successful partnership and seeing the company succeed.”