Iron Doors



Line of Credit Secured by AR and Inventory

Importer of Iron Doors


THE SITUATION: Founded in 2012, the Company is an importer of iron doors for new home construction as well as replacement for existing homes. They bring the American homeowner one of the most extensive and most affordable selections of distinctive iron doors, meticulously hand forged and hand finished from the highest quality 12-gauge steel. The Company supported operations and growth mainly through shareholder debt. With a modified business plan and projected growth, the Company was looking for an Asset Based structure that would enable them to complete their turnaround plan and provide ongoing working capital for anticipated growth.

Southeastern was introduced to the Company through an investment banking firm that had a long history with the owner. The firm was engaged by the Company to assist in finding the right financial partner to help with the Company’s turnaround and growth. After introducing Southeastern to the Company and an onsite visit, Southeastern was able to structure a Working Capital and Purchase Order facility that would meet the needs of the Company going forward. Due to the inventory requirements of a few customers, a Purchase Order facility (allows a company to receive up to 100 percent of the funds needed to fill an order when they are unable to do so on their own. This happens for any number of reasons, but is commonly due to cash constraints or lack of credit from suppliers) was requested by the Company. Due to Southeastern’s history in working with importers and large purchase orders, Southeastern was able to structure a separate Purchase Order facility for the
Company in addition to the Accounts Receivable and Inventory Working Capital Line of Credit.

THE RESULT: The Investment Banking firm was able to successfully help their client find a financing source that understood their business. Southeastern was able to structure a financing package that met the Company’s current and future needs. As the Company grows and returns to profitability, Southeastern will assist in helping the Company transition back into a traditional banking relationship.