Rhino USA secures US$15m Texas Capital asset-backed facility for inventory growth

Rhino USA has closed a US$15m asset-backed financing facility with Texas Capital to increase investment in inventory and provide working capital as the US truck and towing equipment supplier expands its retail distribution.

The financing, announced on 14 October, was arranged through Texas Capital’s asset-based lending team. Rhino USA said the facility will support inventory purchases, its US distribution operations and continued growth across major retail and e-commerce channels.

For the company, the central financing challenge is the amount of capital required to hold sufficient stock before customers make purchases.

Rhino USA supplies towing equipment, recovery gear and off-road accessories through online platforms and physical retail outlets. As distribution widens, the company must maintain adequate product availability while managing the time between paying suppliers, storing goods and collecting proceeds from sales.

Asset-based lending can address that pressure by providing borrowing capacity against eligible business assets, subject to lender controls and collateral requirements. In this case, the company has identified inventory investment as a principal use of the financing, although it has not disclosed the detailed collateral pool or borrowing-base formula.

The deal comes after a period of rapid expansion. Rhino USA said its revenue had doubled over the preceding two years and quadrupled over three years, figures that reflect the company’s own reported performance rather than independently audited results disclosed with the announcement.

The business, now headquartered in Austin, Texas, sells through channels including Walmart’s online marketplace, Amazon, specialist retail and its own direct-to-consumer operations. It also serves customers internationally.

Jeremy Bell, Rhino USA’s chief operating officer, said inventory depth and supply-chain flexibility were central to the company’s ability to compete at national scale. He identified further investment in US distribution and employment in Central Texas and Georgia among its priorities.

The commercial significance of the facility lies in the relationship between inventory availability and sales growth. Expanding retail distribution can increase orders but also expose suppliers to higher stockholding requirements, particularly when replenishment times are long or demand is uneven.

For lenders, the same expansion creates a need to monitor collateral values, stock eligibility and the speed at which inventory converts into cash.

The parties did not disclose the interest margin, maturity, advance rates, financial covenants or amount drawn at closing.