Spirits Distributor & Distillery - June 2016

Karen Small

Location: Texas
Industry: Spirits Distributor & Distillery
Revenue: $22 Million per year
Line of Credit: $2,500,000 Revolving Line of Credit
Collateral: All Asset Borrowing Base, $600,000 Accounts Receivable, $800,000 Inventory, $800,000 Machinery & Equipment

The American Dream
The company was seeking a joint venture between a distillery in Texas and a local distributor with alcohol and wine sales in seven (7) states. The company was working on an acquisition of another distributor that had access to twenty-eight (28) States. The new joint venture and acquisition would drive sales from $5 million and $8 million independently to more than $22 million in the first year and a conservative estimate of $42 million in 2017.

The Sterling Way - Financing Opportunity
Sterling was approached by the brokerage firm of Detwiler Fenton & Company to complete a loan consolidation. The firm was in the process of consolidating five current short term notes secured by a small community bank, a factoring company, and multiple merchant lenders that had second and third security filings behind the senior lenders.

Sterling performed due diligence appraisals on the Inventory and Machinery & Equipment that accessed $1.6 million in available borrowing power along with accounts receivable generated an opening day line of credit of $2.1 million dollars. The five loans that were to be paid off totaled $1.5 million which generated over $600K of fresh working capital that was used to fill new orders and to bring trade vendors under 60-days.

Unlike a Bank all relationships with Sterling Commercial Credit are asset based lines of credit with full dominion of funds flowing daily into the lockbox to minimize the cost of borrowing. The asset based lines of credit allows for weekly borrowing and a 52 week relationship with a Sterling Relationship Manager. Sterling prides itself on a relationship based partnership that allows maximum access to working capital for our growing entrepreneur.

Karen L. Small, Partner
Vice President/Sales & Marketing