Summit Financial recently competed against several commercial finance firms for a growing manufacturer’s working capital needs. While the other firms were able to provide an A/R solution, Summit nearly doubled the availability to this manufacturer by adding an inventory component and term loan against equipment assets. Summit’s working capital facility allows this manufacturer to refinance their bank line and provides access to additional capital for growth.
Summit was able to design a deal structure with the following components:
- 85% on A/R
- 50% on inventory
- 70% concentration limit
- $200,000 collateral-backed term piece
With Summit’s working capital facility now in place, the company is on a solid path for growth and a complete turnaround.