Republic Provided Working Capital to Support Multi Year Government Contract
NEW ORLEANS, April 19, 2023 /PRNewswire-PRWeb/ -- Republic Business Credit is proud to announce it recently provided a $6.75 million factoring legered line of credit facility to a women and minority-owned government contractor, with an accordion up to $10 million.
When the women and minority-owned government contractor secured an additional multi-year contract with the U.S. Department of Defense, the company sought a funding partner that could keep pace with its rapidly expanding needs. The company's Small Business Investment Corporation mezzanine finance allowed it to refinance its limited ABL loan. Republic was able to help the company refinance that loan while effectively meeting the increased demand of the new contract.
The government distributor designs, fabricates and distributes tool kits. It primarily provides its products to federal government agencies, with a focus on the various purchasing offices within the Department of Defense. The company also provides custom fabrication services to some commercial customers located throughout the southeast region.
"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 structured a $6.75 million factoring line of credit that provided availability on all of the company's government and commercial accounts receivables, including an accordion up to $10 million. Shortly after extending the funding, Republic added a supplemental $250,000 mobilization facility, which can make a difference for women and minority-owned companies that need to quickly increase production to fulfill a large government contract. The mobilization advance helps accelerate the creation of cashflows because, during periods of growth, profits often lag behind as companies scale quickly.
"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.
Republic's Senior Vice President, Leigh Guglielmo, added: "This company provides essential products to the Department of Defense and is a key local supplier in the southeast region that supports our national defense 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."
About Republic Business Credit
Republic Business Credit is a nationally recognized commercial finance company supporting the working capital requirements of companies nationwide, including private equity and entrepreneurial businesses. Republic provides asset-based lending, ledgered lines of credit, traditional factoring, factoring and Fast AR Funding. Republic partners with its clients to provide up to $15 million in senior credit facilities to rapidly growing businesses, startups and companies experiences recoverable distress. Republic is recognized by the Secured Finance Network as one of the largest finance companies in the United States. Republic is proud to be headquartered in New Orleans with additional offices in Chicago, Los Angeles and Houston. Republic is a wholly owned subsidiary of Renasant Bank.
About Renasant Corporation:
Renasant Corporation is the parent of Renasant Bank, a 119-year-old financial services institution. Renasant has assets of approximately $17 billion and operates 198 banking, lending, mortgage, wealth management and insurance offices throughout the Southeast as well as offering factoring and asset-based lending on a nationwide basis.
Media Contact
Emma Amorose, Republic Business Credit, 412.807.9236, [email protected]
SOURCE Republic Business Credit
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