Black Olive Capital provided an inventory revolving line of credit in the amount of $1.5MM to a business selling through an e-commerce platform.

The Borrower manufactures and sells products in the HVAC industry and generates most of its revenues by selling on e-commerce platform, Amazon.

The Borrower was not aware it could borrow against its inventory; as such, it had a loan from Amazon, and an MCA in place. The balance outstanding on both loans was $800K, the monthly debt service was $120K, and the total inventory on hand at cost was $2.3MM. The Borrower needed three things, 1) a lending partner it can grow with, 2) capital to grow, and 3) to reduce its debt service.

Black Olive structured a line of credit collateralized by inventory in the amount of $1.5 million (65% of cost). By using Black Olive’s services, the Borrower was able to payoff Amazon and the MCA loan, and Black Olive provided the Borrower over $300,000 in additional working capital (taking the capital provided to 78% of inventory cost) while reducing monthly debt service from $120K to $17K.