Republic Business Credit provided a $6 million asset-based loan to a pharmaceutical manufacturer during a crucial transition period. The flexible financing includes a $10 million accordion feature, providing scalable capital that the manufacturer can grow into as it looks to a bright future.

Based in the southwestern United States with a legacy dating back over a century, the Company is a major supplier of branded and private-label pharmaceutical products, manufacturing over 150 components, including topical and transdermal creams, syrups, and specialized pharmaceutical compounding agents. As they expanded their product line and realigned their business strategy toward a more robust growth plan, Company leadership recognized that growth aspirations could outpace short-term profitability and cash flow. They sought a more strategic and flexible financial partner rather than a conventional bank line of credit. 

Republic Business Credit recognized the company's incredible growth potential and structured a scalable $6 million asset-based loan that provided availability across its accounts receivable and inventory.

“Republic’s full suite of working capital products is intended for this exact situation,” said William Kemp, Senior Vice President of Republic Business Credit. “Our solutions provide clients the opportunity to be financially secure while undergoing operational and growth-oriented shifts necessary to deliver outsized future earnings.”

The competitive and customized financing provides the immediate, flexible working capital needed to execute the Company’s long-term growth strategy, streamline operations, and thrive in the market. It also eliminates the time-consuming task of reapplying for an increase in credit facility as the Company rapidly scales up.

“This transaction underscores our permanent commitment to providing asset-based lending to the lower middle market, where companies often need more bespoke solutions that tend to be less straightforward,” said Robert Meyers, President of Republic Business Credit. “We're proud to partner with such a dynamic management team as they embrace a new chapter of growth and innovation.”