$5.5M Line of Credit Helps Kitchenware Company Ignite Growth Trajectory

Client:
A wholesaler of kitchenware, chinaware, and kitchen accessories with over 70 years in the market, with a seasonal selling peak. Originally founded to bring exclusive European kitchenware to the U.S., it has expanded its product line to include a wide range of cooking, serving, and entertaining items offered under various brands.

Situation:  
After the Company’s former lender announced its intent to terminate their financing relationship, the Company sought a new lender that could execute quickly. Since inventory is depleted during the holiday selling season and much of it originates in China, they needed funding to quickly build up inventory before suppliers shut down for the Chinese New Year holiday. Having had a prior relationship with Alex Scoggin, the Company turned to nFusion Capital. nFusion brought in Iron Horse Credit (IHC) to partner on the transaction to provide maximum borrowing capacity against the client’s inventory.

Solution:
In approximately four weeks, nFusion provided a $4 million ABL Facility, and IHC offered a $1.5 million Inventory Revolving Line of Credit.

“Great effort by IHC’s team, nFusion’s team, and the Company to get this transaction funded quickly. We look forward to working with the Company as they execute their growth plans.” – Cesar Silva, VP of Business Development at Iron Horse Credit

Result:
The financing provided immediate access to funding to purchase and ship inventory, and the breathing room the client needed to continue to grow while managing their business through seasonality peaks.

“I am pleased that we were able to craft an out-of-the-box solution for our client, thanks to our unique partnership with Iron Horse Credit. Their inventory line complemented nFusion’s ABL facility to deliver maximum borrowing capacity against the Company’s inventory and other assets. This funding will support the Company’s growing cash flow needs and address their seasonality demands.” -Alexandra S. Scoggin, Senior Executive Vice President, nFusion Capital