Beverage Distributor
$2,000,000 Line of Credit
The company was profitable and generated $54,000,000 in revenue in 2009, but unable to obtain traditional bank financing because they were highly leveraged with a negative tangible net worth. The company had over 7,000 active customers including many small independent stores.
First Community Financial provided a $2,000,000 revolving line of credit for the top 30 customer accounts which included large grocery store chains, national convenience stores, warehouse clubs and distributors. This structure allowed the company to obtain financing to meet its working capital needs and reduced the reporting requirements to the lender. First Community also provided a flexible covenant package that accommodated the seasonal nature of the company’s business.
