Our client manufactures zippers for large public organizations, especially the Armed Forces. Originally from China, he has been in business for 25 years. Gross sales dropped from $6 million in 2008 to $3 million in 2013 due to increasing restrictions on government purchases and equipment malfunctions. In 2013, our client began doing the research to offshore his manufacturing facility to China.
- Develop strategic plan to keep manufacturing in the US.
- Purchase new equipment with higher production capabilities.
- Streamline manufacturing processes.
- Optimize supply chain management.
$220,000 in a bridge loan against outstanding invoices and $600,000 commercial line of credit for equipment purchase.
- Preparation of 2013 interim financials.
- Submission of loan package for $220,000 bridge loan.
- Preparation and submission of loan package for $600,000 commercial line of credit.
- Developed and implemented Debt Service Coverage (DSC) Ratio.
- Monitor monthly Profit & Loss Statements in accordance with DSC Ratio.
A bridge loan of $150,000 approved. A commercial line of credit approved for $600,000 at 4.775% with an amortization period of 10 years and adjustment period of 4 years. Purchase and implementation of new equipment and manufacturing workflows to increase production capacity by 20% and production costs by 6%.
We’re also happy to report, the manufacturing facility remains in the US.