Financing into an Equity Raise

Financing into an Equity Raise

The case study below highlights how we have worked with a medical device manufacturer seeking a bridge financing solution to help them grow ahead of a large equity raise.
 
The company was projecting significant revenue growth following market acceptance of their products and required growth financing to help them ramp up. Company management needed a non-dilutive financing relationship, since they had already raised significant capital and did not want to sacrifice any additional ownership.

The Credit Junction was able to craft a unique financing solution with a $1M initial advance and $3.2M line of credit by lending against the company’s A/R, Inventory, M&E and IP.


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ABOUT THE COMPANY

HQ Location: South Central, US

In Business For: 3 years

Annual Revenues: <$5M

Management: Proven management team with experience in medical device field.

Customer Base: Domestic and international hospitals, clinics and surgery centers.


CHALLENGES FOR THE COMPANY

 
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Machinery Purchase: Company needed growth financing to support the purchase of a new micro-milling station.

High Growth: Company projected unprecedented short term growth after market adoption of products. Company needed a financing solution that could keep up with its pace of growth.

Production Cycle: Company had a long, complex production process with high R&D costs, demand for technical expertise and the management of multiple vendors and many component parts.

Non-Dilutive Financing: Company required additional financing without sacrificing equity.


THE CREDIT JUNCTION 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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