Hi-Tech Equipment Manufacturer
Deal Size: $3,600,000
Funding Requested: Cash Funding
KTC was approached by a company, which manufactures the most technologically advanced film coating machines in the world. The Asian Crisis affected most of their customers and caused the company to sustain losses in order to maintain their skilled staff. The company had been awarded several million dollars in orders; however, the losses made the company difficult to finance through traditional finance sources.
KTC overcame the financial picture of the company and focused on the fact that the company could manufacture and deliver on time. KTC was able to structure a financing relationship that secured payment to various suppliers as well as reimburse the company for existing work-in-progress inventory. The machines were manufactured and shipped on time.
KTC has helped finance deliveries worth $1.9 million all taken out by an asset-based lender upon shipping. We are currently reviewing the financing of up to an additional $10 million of backlog. We expect our client to have a very profitable year, and they will be able to accomplish this without selling equity in the business.