First Capital, a specialised commercial finance company, announced that it has provided an USD 8.85M asset-based senior credit facility to a regional distributor of pipes, valves and fittings. The senior credit facility consists of an USD 8M working capital revolver collateralised by accounts receivable and inventory and a USD 850,000 term loan.
First Capital provides working capital financing ranging from USD 2M to USD 25M primarily to small and middle-market business owners with annual sales ranging from USD 10M to USD 250M. Credit facilities are in the form of asset-based loans, factoring or invoice purchasing arrangements. The company needed to refinance its existing senior debt facilities to increase the company’s availability and allow for short-term liquidity. First Capital created a tailored financing facility that permitted additional structural advantages over the previous lender.
