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Diamond Business Credit Provides Credit Line to Precision Machine Shop

July 29, 2016, 07:11 AM

Diamond Business Credit announced that it recently funded a $50,000 line of credit to a precision machine shop. 

This longstanding, marginally profitable company was struggling to get by servicing existing customers and at the same time working on rebuilding their back-log.  Things were at least stable until their major customer, who was paying weekly, changed its payment terms to net 45.  Overnight, things quickly changed from cash-flow neutral to cash-flow negative on a week-to-week basis, which of course includes payroll and other critical obligations.

Diamond quickly approved a small line to plug the gap.  Several existing secured creditors were very cooperative in providing the necessary subordinations.

This company’s short-term cash issue is now fully resolved and the company can continue with its efforts to grow the business, free from the worry that there is not enough working capital to fund that growth.

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