Financing Growth to Bankability

Financing Growth to Bankability

This case study highlights how we worked with a company and their management team to provide them with the growth capital they needed to reach bankability.

This plastics recycling business was an early-stage company led by a proven management team. Despite its short time in business, the company was already profitable and had a well-capitalized balance sheet (M&E, Inventory, A/R). In order to increase capacity and unlock growth, they needed to purchase additional equipment. The company required a financing partner to leverage their existing assets and provide the capital to execute. 
 
TCJ looked past their short operating history to provide them with a $650,000 facility that allowed them to grow to bankability just two years later. They have now reached a financing agreement with a regional bank, which has refinanced TCJ.


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ABOUT THE COMPANY: 

HQ Location: Midwest

In Business For: Less than 1 year

Annual Revenues: <$2M

Management: Experienced in industry (>35 years)

Customer Base: Reprocessed plastic sold to private industrial manufacturing companies


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THE CHALLENGE

Limited Operating History: Startup nature of the company prevented them from accessing capital from traditional financing institutions.

Managing Demand: The company had excess demand, forcing it to re-invest all of its money back into inventory purchases and away from innovation.

Machine Purchase: The company had identified new machinery to help it relieve a bottleneck, but did not want to put any money down on the machine purchase.

Working Capital: The machine that they identified was being built in China, and the company needed working capital to place the order.


THE SOLUTION

The Credit Junction worked closely with the company and its management to craft a financing solution that met both their short and long term needs. 

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