Republic Provides a $5.50m Ledgered Line of Credit for a Gulf Region Based Food Service Company

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Republic Business Credit funds growth capital for food manufacturing company that provides school meal programs

The food supply chain is critical to everyone’s well-being, we are excited to help so many food companies as they lead us into healthy food alternatives.

When a Gulf region based food service company sought more funding than their incumbent bank lender could provide, they fed Republic Business Credit the order for growth-orientated working capital. Republic approved a non-dilutive and adaptable facility that provided availability on their account receivables and purchase orders. The food service company was looking to accelerate their ability to buy grocery inventories, paper products and hire staff to keep up with the growing demand across the public-school systems.

Republic is a proud supporter of the food and beverage industry, especially our clients that buy produce through their local farms and produce providers during uncertain growing seasons. The total US packaged food market segment is expected to exceed a trillion dollars in 2021 and continue to see a CAGR in excess of 4%. The natural food and beverage category represents 10.5% of the volume, but nearly 30% of the dollar growth volume across the total industry, according to several sources. Republic is increasingly providing more working capital financing in the natural, organic, ingredient, and plant-based categories.

The food service company provides breakfast, lunch, snacks, dinner and drinks to school districts across the gulf region, and continues to add on additional school districts and support thousands of students. The company primarily sells directly to the school districts throughout the Gulf region. The rapidly growing company far exceeded their sales forecast during the Covid-19 pandemic as students needed additional essential services where they were in school or not. The company supplies meals throughout the year and remains at the heart and belly of many students’ meal programs. As the founder told Republic when they were searching for capital, “This debt facility will not only increase our ability to grow as a company, but it will allow us to help so many more students and schools as we turn into the 2021 back to school season.”

Republic provided a $5m ledgered line of credit facility with a $500,000 purchase order call facility to a Gulf Region Food Service Company. Republic’s funding will enable the company to buy more bulk inventory, hire additional staff and increase the number of school districts they can support each school year. Republic structured the ledgered factoring facility to allow for rapid growth without any financial covenants or field exam requirements. The company expects a strong close to 2021 and plans to request an inventory and equipment term loan facility as they continue to build their company.

Republic’s President, Robert Meyers said, “We believe our factoring, ABL and inventory lending products are great supplements to the vision of our growing portfolio of food brands.” He further added, “we are excited to help enable our entrepreneurs to focus on adding revenue while knowing they have a supportive partner to weather any supply chain or growth issues they might encounter during the pandemic.” Republic’s CEO, Stewart Chesters, added “The food supply chain is critical to everyone’s well-being, we are excited to help so many food companies as they lead us into healthy food alternatives.” Republic Business Credit provides factoring, asset-based lending and direct to consumer facilities up to $10,000,000 across the United States.    

Republic Business Credit partners with banks, accountants, sponsors, lawyers and investment banks to collaboratively support entrepreneurs across the United States, to create value, by enabling them to focus on growing successful businesses.

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Republic Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, non-recourse factoring, factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital to small and mid-sized companies throughout the United States.

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Joanne Chesters
@republicbc
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