Contract Manufacturer

The Customer

Contract manufacturer – Canned beverage manufacturer/Co-packer

The Challenge

  • Newly formed company (less than three years in business)
  • Very little historical revenue & historical losses
  • Large CapEx requirement needed to fulfill new customer contracts ($17MM)
  • Rapid growth with minimal liquidity & no working capital LOC
  • Majority owner did not want to personal guarantee.
  • 12 months delivery/installation period for equipment

Done Deal.

  • Provided $8MM in Liquidity for a Leaseback against 2 existing production lines.
  • Progress payments for project, further protecting liquidity .
  • Offered 5-year term with Balloon purchase option to minimize payment .
  • Included new ERP System in the financing (At same 60-month term) along with costs related to engineering, delivery, installation & implementation.
  • Provided funding in the amount of 42% of last year’s revenue with no additional covenants/restrictions to business.

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When economic winds or business cycles turn against your company and creative capital is needed to turn performance around, trust First National. Explore more case studies of companies facing these challenges by clicking below.

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