Summit Provides Inventory Financing to Textiles Company
Published August 13, 2012
Categories: Industry News
Summit Financial Resources said it recently provided a textiles company with a cash credit line of $750,000, which included a term loan for inventory financing. Summit described the deal as an “inventory sub-limit on an asset-based lending type structure.”
Summit said the company was in a turnaround mode and needed expense management as well as improved cash flow. In addition to accounts receivable financing, they also needed inventory financing as a term loan against their inventory.
Summit was able to design a deal structure that values the company’s inventory based on their current inventory tracking system. This structure also includes a generous advance rate, and availability that is based on the company’s sales of both product and some installation.