Revolving Credit Line, Term Loan
This manufacturer had historically succeeded in the women’s hosiery segment. However, this market had been in decline for many years, and the company needed to diversify. The decision was made to enter the medical compression hosiery business by partnering with an investor to establish an affiliated company. The company would manufacture medical compression hosiery and sell to the affiliate. However, the affiliate was not interested in becoming a co-borrower for a new facility.
Lighthouse designed a structure where the company purchased invoices from the affiliate and then assigned them to Lighthouse. This in combination with an aggressive structure on the accounts receivable, inventory and machinery and equipment improved the company’s working capital position tremendously allowing it to aggressively pursue new sales opportunities.