Consumer Products Company
$4,000,000 Line of Credit
A group of consumer product companies sought new financing after their current lender froze their line. In 2009, the company had revenue of $108,000,000 but incurred significant losses. The companies implemented a turnaround plan that included headcount reductions, closure of money losing businesses and the liquidation of slow moving product lines. The company returned to profitability in 2010 although evidence of the turnaround was short in duration.
Despite the significant losses, the companies ended 2009 with over $9,000,000 in equity. First Community Financial invested the time necessary to understand the business and the companies’ turnaround plan. First Community proposed an innovative structure that met the ongoing working capital needs of the business. First Community proposed a $4,000,000 revolving line of credit with a $1,500,000 sublimit on inventory. First Community was chosen due to its flat organizational structure giving the company access to decision-makers and quick responses to ongoing credit requests. Since closing, the companies have increased their credit facilities to $6,500,000.
