Five Star Manufacturing – TN

SEASONAL STRUCTURE CREATES ADDITIONAL AVAILABILITY

Founded in 1948, the company is a leading manufacturer of cold weather starting aids along with a wide variety of exhaust clamps, placards, and other automotive products.  For over 70 years, the company has provided high quality American made products and exceptional service to the OE and aftermarket segments.  Sales declined over the last two years related to unseasonably warm winters straining profits and cash flow.  The prior President along with a new, experienced CFO were put in place to lead the company back to profitability.

Lighthouse took the time to analyze and understand the company’s highly seasonal cash flow and structured a revolving line of credit secured by accounts receivable and inventory to support the seasonality.  By allowing the loan to be inventory heavy during seasonal revenue dips, Lighthouse provided this manufacturer with the necessary liquidity to build inventory ahead of its sales season.