Republic Provides a $3.5m Non-Recourse Facility to a Furniture Manufacturer

NEW ORLEANS, June 2, 2020 /PRNewswire-PRWeb/ -- When a West Coast family-owned furniture manufacturer needed more availability and additional liquidity from their debt facility, they chose Republic Business Credit to provide the bridge to help through the Pandemic. Republic presented a stable, consistent and growth-focused approach to the management despite the ongoing recession and public health crisis. Republic provided credit protection on their receivables, less restrictive concentration limits and a higher advance rate on their eligible collateral. Despite slightly increasing their cost of capital with a non-bank finance company, they prioritized having no financial covenants to better equip their evolving marketing strategy during the Pandemic.

The company has seen a tremendous demand from large e-commerce vendors to help equip remote offices for those switching to telecommuting over the past few months. The company CEO said, "The comfort of knowing that we will collect our wholesale receivables provides us the confidence to continue supplying large retailers in the medium term, while increasing our responsiveness to the short-term needs of our customers that are working from home."

The company manufacturers and imports home office and entertainment furniture including desks, chairs, stands and consoles. The company typically finds itself in the moderate and mainstream affordable price categories. The company believes it is well-positioned for the post Pandemic transition, as they see a lot of upside in both the short and medium terms for countrywide office reopening plans. In the short-term, the company will continue to benefit from the "working from home" orders as people look to pivot away from their dining room table offices. In the medium term, the company is exploring options on the commercial side as their customers are reexamining open office concepts to comply with social distancing guidelines from the CDC and State Health Departments around return to work protocols.

Republic Business Credit provided a $3.5 million non-recourse factoring facility that provides credit protection without any covenants. Republic's funding was used to refinance out the existing bank facility while providing over a million dollars of availability to respond to customer demand. The company believes it will be an unpredictable revenue year, that while they are confident there is a significant uptick in demand, they are not sure of the timing of the orders given the ever-changing "return to work" guidelines and timelines. "We continue to see small and medium-sized businesses exploring industry growth opportunities, while struggling with inconsistent behaviors from their incumbent bank lenders," said Robert Meyers, President of Republic. He further added, "We have built our business to help support companies that need a mix of growth and recovery solutions across our factoring and asset-based lending products."

Republic Business Credit partners with banks, accountants, sponsors, lawyers and investment banks to collaboratively support entrepreneurs across the United States, to create value, by enabling them to focus on growing successful businesses.

ABOUT REPUBLIC BUSINESS CREDIT
Republic Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub's Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, non-recourse factoring, factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital.

SOURCE Republic Business Credit