Aluminum Extruding Company



Line of Credit Secured by Accounts Receivable and Inventory

Aluminum Extruding Company

North Alabama

THE SITUATION: Founded in 2014, The Company is an aluminum extrusion operation focused on small mill finish extrusions. According to management, the majority of extrusion companies in the US concentrate on large jobs, therefore neglecting the needs of smaller extrusion opportunities. The Company focuses on industries such as Building and Construction (Doors and Windows, both residential and commercial, Awnings and Canopies, Store Fronts, Highway and Street Signs, Shower and Tub Enclosures, Stadium Seating), recreation/transportation, consumer durables, and distribution (Standard including angles, rod, bar, tube, I-beams and more). After funding start-up costs with shareholder debt and a bank line of credit, the Company was looking to increase their current line to handle expected growth in 2018.

THE PROCESS: After discussions with their local banker, it was determined that the Bank was not going to be able to increase their current line in the short term due to prior losses. The Bank expects the Company to have a great 2018, but preferred to wait before providing the line increase. After discussing possible alternatives, the Bank referred the Company to Southeastern Commercial Finance. After discussion with management and receipt of a complete financial package, Southeastern was able to close and fund a new working capital facility for the Company in two weeks, allowing for additional availability to fund a building backlog.

THE RESULT: Due to the Banker providing a solution to their client, the Banker was able to keep the Company’s depository relationship including treasury management services. The Banker will keep an eye on the Company’s progress with the intent of graduating the line into the Bank after the Company recovers financially. The result was a win for all parties involved.