Outerwear Contract Manufacturer
$2,150,000 Line of Credit and Term Loan
A contract manufacturer of quality outerwear for retailers was seeking to replace its factoring relationship with a less expensive line of credit. The company has a very seasonal business with a need for inventory financing on the front end of the working capital cycle. The company provides customer specific private label products under firm purchase orders from retailers. Purchase orders are received months in advance for every order. Orders are produced and shipped based on delivery dates outlined in the purchase orders. The company had breakeven results on revenue of $6,300,000 for 2010.
First Community Financial provided a $2,000,000 revolving line of credit with a subline for inventory of $500,000. First Community also provided a $150,000 term loan as part of the facility. The line of credit provided additional liquidity at a much lower cost. The decision to go with First Community was based on a very customized loan structure, access to the decision makers and competitive pricing.
