Situation:

This fourth-generation company – the last manufacturer of singular graphic instruments and parts in the U.S. – had introduced a new product line and their revenues were on the rebound. Unfortunately, their lending bank had transferred their loan to the bank’s workout group, and the bank would not provide any additional financing to support the new revenue growth.

Solution:

The bank agreed to subordinate their first lien position on the accounts receivable, allowing Forest Capital to provide a $750,000 facility. This enabled the company to purchase raw materials and pay workers.

Results:

The company was able to meet the demand for the new product line, meet payroll, and continue to grow.