Manufacturing
Overview
A flexible ABL line scaled from $1.5M to $2M, restoring liquidity to rebuild inventory and fund new orders. A short-term chip-shortage setback turned into renewed momentum.
Contact
Tom Kessel
Principal
Number:
The Situation
The manufacturer produces utility vehicles used to clear sewers and drainage systems. Demand and a healthy backlog of municipal orders were strong.
The Constraint
The global chip shortage limited access to large truck chassis, halting production and creating temporary operating losses. Banks declined financing over those short-term losses, even though the issue was isolated and improving.
The Structure
We secured a $1.5M line of credit through a non-bank ABL lender, with advances tied to accounts receivable and inventory. As the business regained traction, the facility was expanded to $2M.
The Outcome
The facility provided the liquidity to rebuild inventory and fund new orders through the post-shortage recovery. Financing aligned to the production cycle turned a temporary setback into renewed momentum.
