Trail Camera

cameraheader

$8,000,000

Working Capital Line of Credit

Trail Camera Manufacturer

Start-up Company in the business of designing and manufacturing trail cameras for the hunting and outdoor markets. The Company was started by three individuals who previously worked for a multimillion dollar trail camera manufacturer. After receiving the licensing rights of a major sporting brand, the Company expected sales to rapidly grow within the first year of operations.

The Company approached several lending institutions for working capital financing. After being turned down by most lending institutions due to the startup nature of the business, the Company found a local bank that was willing to offer financing through an SBA loan. After realizing the SBA route would result in significant upfront fees, the Company began looking for alternative arrangements. The community bank reached out to Southeastern about a possible participation.

After discussions with the Bank and a meeting with the prospect, it was determined that a $3,000,000 line of credit and Purchase Order facility would meet the Company’s short and long term growth goals. The Bank was comfortable in taking 50% of the loan. Southeastern would lead the credit and monitor the collateral with a 50% participation while the Bank would control the relationship and through their participation, provide more competitive blended pricing for the Company.  Note: Due to the Company’s growth during year one, the line was increased to $8,000,000.

Result

– The Bank was able to accommodate the financing needs of a new customer plus gain a new commercial and industrial client which helped in the Bank’s overall diversification from Real Estate.

– The Bank was able to gain significant loan growth through this transaction in addition to gaining the depository relationship.

– The Bank won the business from competition because the structure and blended pricing was ultimately more advantageous for the Company.

– The Company was able to procure a Bank relationship with the flexibility of an ABL structure rather than be locked into a non-traditional finance company with multi-year terms.