Republic Business Credit has announced that it has extended a $10 million factoring ledgered line of credit facility to a government contractor that is at least 51% owned by women and minorities.
After winning a new multi-year contract with the United States Department of Defence, the women and minority-owned government contractor began looking for a funding partner who could keep up with its rapid growth.
The company, with headquarters in Los Angeles, makes and sells women's apparel under a variety of brand names to customers through big retailers like Nordstrom, Stitch Fix, Bealls, Dillard's, and Burlington. The business focuses on producing knitted garments such as dresses, cardigans, blouses, slacks and skirts. The client's contract with its current factoring firm was about to expire, therefore they needed a solution within a matter of weeks. Republic Business Credit was recommended to the company.
The company was able to restructure its small ABL loan with the help of mezzanine financing from the Small Business Investment Corporation. Republic assisted the company in restructuring the loan so it could fulfil the expanded requirements of the new contract.
The government wholesaler is responsible for the design, manufacture, and distribution of tool kits. Its primary customer base consists of federal government entities, particularly the several Department of Defence buying offices. Some commercial clients in the Southeast are serviced by the company's custom fabrication division.
“We supply products and toolkits to several federal government agencies, in addition to the numerous other products we provide to our other government and commercial customer bases. The needs of our customer base can ebb and flow depending on the life expectancy of the tools,” the company president said. “It was important for us to find a confident funding relationship. Republic understands our industry and our customers. We are excited to partner with such a dynamic firm that understands the flexibility we need to grow our business.”
Republic Business Credit arranged a $6.75 million factoring line of credit that made receivables from both government and commercial clients, with an accordion up to $10 million, immediately available to the company. Republic launched a new $250,000 mobilisation facility shortly after the financing was increased, which is especially helpful for women and minority-owned businesses that need to rapidly raise production to complete a significant government contract. Since earnings tend to lag behind as a company expands rapidly, the mobilisation advance is a useful tool for speeding up the process of creating cashflows.
"We are proud to partner with women- and minority-owned entrepreneurial businesses that have strong, foundational community support and are looking for the right partner to get to the next level and achieve incredible success," said Republic President Robert Meyers.
In the words of Republic's SVP of Operations, Leigh Guglielmo: "This company provides essential products to the Department of Defence and is a key local supplier in the southeast region that supports our national defence mission across the world."
“We are incredibly proud of our armed services, and it is an honor to support entrepreneurs that align with our women, minority- and veteran-owned government contractor partnerships,” Meyers said. “Our unique lending products provide us the ability to truly get to know the businesses with whom we partner, and we are especially proud when we can support diverse, women- and minority-owned companies that reflect our own team,” said Republic Business Credit CEO, Stewart Chesters. “We won the Secured Finance Networks Alignment Award for our performance across Diversity, Equity and Inclusion. It’s great when we can provide that same support across these valuable, thriving communities.”
Republic Business Credit is a leading commercial finance organisation serving businesses across the country, from private equity firms to startups in need of operating cash.
In addition to traditional factoring, factoring, and Fast AR Funding, Republic now offers asset-based lending and ledgered lines of credit. Rapidly expanding enterprises, new ventures, and businesses in recoverable crisis can get up to $15 million in senior loan facilities through Republic's client partnerships.
The Secured Finance Network lists Republic as a leading finance provider in the USA. Republic takes great pride in its New Orleans headquarters and its branches in Chicago, Los Angeles, and Houston. Renasant Bank owns 100 percent of Republic.
Renasant Corporation is the holding company for Renasant Bank, a financial institution that has been in operation for 119 years. Renasant has a total of around $17 billion in assets and runs 198 locations throughout the Southeast that provide banking, lending, mortgage, wealth management, insurance, and even factoring and asset-based financing to clients all over the country.
