$3,500,000 A/R, M&E, & capex facility for machinery manufacturer

$3,500,000 A/R, M&E & Capital Expenditures Facility

Machinery & Tooling Manufacturer Refinances to Increase Profitability

CLIENT

This Missouri-based company, founded in the early 1980’s, is a full-service provider of tool & die design, manufacturing, general machining and fabrication, stamping, laser cutting and a variety of other manufacturing capabilities for OEMs (original equipment manufacturer).

SITUATION

The company experienced a decline in financial performance at the beginning of 2018. Since then, the manufacturing company has gone through significant changes and turnaround efforts, which began paying off in Q3 of 2018. During this time, the company had a revolver and a term loan with another lender. As a consequence of the poor financial performance, the lender elected to exit, termed out the remaining revolver balance and began amortizing the total outstandings monthly. The company needed to refinance the term loan in order to achieve a successful turnaround.

FINANCIAL SOLUTION

Accord provided an accounts receivable purchase facility, machinery and equipment loan and capital expenditure line, which provided the funds necessary to pay off the current lender. It also provided enough capital to add new machinery necessary to efficiently produce some new products. The company now has positive financial performance and a growing customer base. Their new machinery also enabled them to decrease lead times and increase profitability to generate growth and profit for the company.

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