Republic Business Credit Provides $3.5MM Factoring Facility to Furniture Manufacturer
Republic Business Credit provided a $3.5 million non-recourse factoring facility that provides credit protection without any covenants to a furniture manufacturer on the West Coast.
The manufacturer needed more availability and additional liquidity from its debt facility and chose Republic Business Credit to provide the bridge to help through the COVID-19 pandemic. Republic provided credit protection on the manufacturer’s receivables, less restrictive concentration limits and a higher advance rate on its eligible collateral. Despite slightly increasing its cost of capital with a non-bank finance company, the manufacturer prioritized having no financial covenants to better equip its evolving marketing strategy during the pandemic.
The manufacturer has experienced tremendous demand from ecommerce vendors to help equip remote offices who switched to telecommuting over the past few months. The company manufacturers and imports home office and entertainment furniture including desks, chairs, stands and consoles.
The manufacturer used Republic’s to refinance out an existing bank facility while providing more than $1 million of availability to respond to customer demand.
“We continue to see small and medium sized businesses exploring industry growth opportunities, while struggling with inconsistent behaviors from their incumbent bank lenders,” Robert Meyers, president of Republic Business Credit, said. “We have built our business to help support companies that need a mix of growth and recovery solutions across our factoring and asset-based lending products.”
Republic Business Credit provides factoring and lending facilities up to $10 million and its credit and collection product is able to support both small and large companies.