RECENT FEATURED TRANSACTION:
A Texas-based company contacted our Huntington Beach location regarding an equipment loan. The company was a supplier and installer of large water tanks for commercial and industrial use. The main applications of their product was for rain water harvesting, well water storage, fire water storage and municipal water storage. Their customers ranged from breweries to large farm co-ops to City Municipalities. Their business is growing and their brand is becoming well-known.
The challenge: The company was running in to a ceiling when it came to their growth potential. The supplier they worked with was located in Australia and had minimum shipment requirements and needed cash up front for the orders. The typical sales cycle (from ordering from supplier to delivering and being paid by the customer) could run as long as 4-6 months. This, coupled with net losses from operations as the company went through growing pains, made them unfit for bank financing.
After applying for and being turned down for an SBA loan, Huntington Coast Capital brought in some forward looking, entrepreneurial lending options. The lender ultimately chosen by our client provided for the cash to purchase the inventory by leveraging existing equipment and freeing up cash trapped in the assets of the company.
The result: A cash injection was possible by leveraging the company current equipment and inventory assets which resulted in being able to fulfill the increasing customer orders. Our non-institutional solution will bridge the company for 12 to 18 months and allow the company to make that jump to profitability. They will likely be ready for traditional financing within a two year time period.
If your business could use a cash injection to take your operations to the next level, we would like to speak with you. Click the Apply Button below to inquire about the details.