Case Summary
The client is the owner of a $5 million chemical post-production packaging, warehousing and shipping facility needing an expansion loan approval for new construction.
Company Profile
The client is currently a 100% woman-owned, Oklahoma business with 70 years of experience as a one-stop solution for industrial facilities’ post-manufacturing needs. It provides contract labor to manage and operate clients’ packaging, bulk material handling, third-party logistics, warehousing and shipping functions from their warehousing facilities.
The company was founded in 1957 by a man who was responsible for staffing more than 35 chemical plants through the 1950’s and 1960’s. He recognized that the packaging, shipping, logistics and warehousing functions were complementary and fundamentally different from his employer’s core competency of chemical manufacturing. The company was created to provide a comprehensive post manufacturing solution so their clients can focus on their core competency – chemical manufacturing.
Proposed use of funds:
- Land, building, and equipment $4,000,000
- Accounts receivable revolving line of credit (RLOC) $1,000,000
The Problem
The company needs an expansion loan for the construction. Several banks turned down the client due to insufficient cash flow. Her due diligence was therefore not in order, as banks have stricter approval requirements.
Our Solution
Veillon was able to annualize their latest statements and thereby produce a positive cash flow. This allowed a partnering bank to approve the expansion loan under amortization on a 20-year basis and simultaneously lessen cash flow stress via the RLOC provided by the accounts receivable loan.
The End Result
The client was able to attain her expansion loan to build the new warehousing & shipping facility with a newly-expanded revolving line of credit to run the facility.
Is your situation similar? Contact us today to find out how Veillon can help you, too.