When their current lender asked them to find a new source of funding, this 30 year-old textiles company needed immediate working capital. A family-owned business that manufactures, distributes and installs textiles for commercial industries, this company was in turnaround mode and needed expense management as well as improved cash flow. In addition to accounts receivable financing, they also needed a term loan against their inventory. At the time they did not have a perpetual system in place, only a manual inventory accounting system.

Summit was able to design a deal structure that values the company’s inventory based on their current inventory tracking system. This structure also includes a generous advance rate, and availability that is based on the company’s sales of both product and some installation. The creation of this $750,000 credit line required a clear understanding of the company’s financial data, business model, and goals for future expansion.

With Summit’s working capital facility and inventory term loan now in place, the company is on a solid path for growth and a complete turnaround.