Republic Business Credit Provides $3MM ABL to Promotional Products Manufacturer

Republic Business Credit provided a $3 million asset-based loan facility secured by accounts receivables to a Midwest-based, private equity-owned promotional products manufacturer. The facility refinanced the company’s incumbent bank lender and provided more borrowing base availability at closing.   

The bank lender originally wanted to limit the company’s access to working capital despite its return to profitability and committed private equity sponsor, so the company partnered with Republic Business Credit to refinance its credit facility. In addition to expected growth as tradeshows return, the company’s existing customers have placed larger than normal orders due to the fear of potential supply chain complications down the road. Against this backdrop, the company sought an ABL facility that would support its growth and business renewal plans.

The company is a promotional products manufacturer that services companies across the automotive, technology, finance, energy and retail industries throughout the United States. The company specializes in custom manufacturing and recently vertically integrated several supply chain services to supplement its product manufacturing by adding value to its warehousing, fulfillment and distribution support. 

The company’s private equity sponsor introduced this opportunity to Republic Business Credit directly.

“We are focused on providing ABL, direct-to-consumer loans and factoring to private equity-owned companies across the country,” Robert Meyers, president of Republic Business Credit, said. “Our team worked with the company to structure a growth-orientated facility that provided significantly more liquidity to enable the management team to focus on growth.”

“Since our founding, we have always been committed to providing broad and inclusive access to working capital to lower and middle market companies that seek a better partnership than a traditional loan structure will provide,” Stewart Chesters, CEO of Republic Business Credit, said.