Gibraltar Business Capital recently closed on a $4.5 million asset-based line of credit for a distributor of fishing supplies. Based in Campbellsport, WI, HT Enterprises is a niche company that sells everything from fishing tackle, rods and reels to clothing and accessories, but its primary market is ice fishing, making for an exceptionally seasonal sales cycle.
To protect the periodic nature of its sales, most of which occur during the winter months, the small business needed a smarter form of financing. Given the extreme seasonality of the business and the related working capital and profitability complexities, this recent deal took serious analysis and a creative loan structure in order to deliver an adequate level of liquidity while maintaining an acceptable risk profile for Gibraltar.
The innovative ABL facility included a non-traditional borrowing base structure and flexible covenant package. As a testament to the importance of the customer to its community, a local partner, Hometown Bank, retained the mortgage and term loan facilities. With multiple parties and layers of debt involved, Gibraltar demonstrated a commitment to partnership, creating a true win-win scenario. Gibraltar was proud to provide HT Enterprises with a line of credit that will not only help balance the company’s working capital needs during seasonal cycles, but will ultimately help the fishing-products distributor reel in bigger deals in the future.
Headquartered in Chicago, Gibraltar Business Capital is a privately held middle-market lender providing small- to medium-sized business owners fresh and accessible capital alternatives to a commercial bank loan. With fast, flexible asset based lending and factoring solutions, Gibraltar delivers lines of credit and specialized funding facilities from $2 million to $10 million that allow businesses to meet their objectives. Building on its 60-year history, Gibraltar Business Capital is a multifaceted company strategically positioned with the portfolio, infrastructure, personnel and resources to support its clients nationwide.