eCapital structures US$17.5m ABL facility for consumer products distributor

eCapital, a technology-enabled specialty finance provider serving small and medium-sized businesses across North America and the United Kingdom, has structured a US$17.5m asset-based lending (ABL) facility for a multigenerational consumer products distributor in the arts and crafts sector, headquartered in the Midwest.

The facility provides advances against both accounts receivable and inventory, addressing the company’s working capital requirements. Given the distributor’s extensive supplier network, inventory-intensive operating model and continuously expanding product catalogue, a flexible financing structure was required to support seasonal demand, fund inventory levels and facilitate ongoing new product introductions.

The company was introduced to eCapital through its financial advisor after determining that its existing bank financing arrangement had become overly restrictive and no longer aligned with its operating model or growth trajectory. In response, eCapital designed a customised ABL solution that increased liquidity through higher advance rates on receivables and inventory, accommodated certain operational ineligible assets and permitted cash interest payments on subordinated debt. The transaction was executed efficiently to ensure uninterrupted supply chain and fulfillment operations.

eCapital’s asset-based lending team focused on delivering a capital solution aligned with the distributor’s complex operating model and current stage of growth. Through close collaboration with the management team, the financing was structured to provide the liquidity necessary for confident, uninterrupted business operations, reflecting the company’s disciplined approach to inventory management, customer relationships and supply chain oversight.