A small but growing North Carolina wholesaler distributor of automotive, plumbing and hardware supplies had operated its business utilizing a line of credit from a local bank for several years. Due to the two partners’ extensive relationship with several foreign manufacturers, the opportunity to significantly increase sales led to the need for an increased and more flexible financing facility. The current bank was unable to help the company primarily due to its equity size. The bank provided the company with several potential alternative lenders to provide the needed financing.
The partners believed that another traditional bank would provide them with the increased financing they needed. Over a six month period, the partners met with numerous banks. VCF stayed in frequent contact with the partners, and assisted in providing potential solutions to the company’s goals. Ultimately, VCF met with the partners and designed a flexible financing program that would allow the company to achieve its projected growth by utilizing additional availability on its inventory. After considering their options, the two partners selected VCF’s innovative program as the best option for their business.
With a $1,000,000 Asset Based Line of Credit in place, providing added flexibility and availability on inventory, the company’s sales growth is being achieved and profitability has more than doubled.