TAB Bank is pleased to announce it has provided a wood products distributor in Arkansas with a $5 million asset-based credit facility. The client is a custom millwork and wood products distribution company, specializing in hardwoods, hinges, slides, adhesives, and warehousing, primarily targeting the custom cabinet manufacturing industry. Their mission is to partner with vendors and customers to provide unparalleled products, service, and solutions to the specialty hardwoods market.
Servicing its core regional markets of Arkansas, Mississippi, Missouri, Louisiana, Oklahoma, Tennessee and Texas, the client has fostered a very close-knit, relationship-oriented regional distribution model that keeps its vendors and customers coming back for more, with reliable regularity.
TAB Bank was able to help the client exit a banking relationship that had unusually stringent covenants, including annual liquidity stress testing, annual inventory audits, and annual financial statement audits. Given the high inventory turnover inherent to the client’s business model, these were proving expensive and cumbersome. Enter TAB Bank, which was able to provide a larger credit facility, higher advance rates on A/R and inventory, and less restrictive covenants – at roughly the same cost.
Indeed, TAB Bank’s facility will save the client money over time, given the high expense incurred to meet the previous bank’s requirements. In addition, TAB Bank’s larger credit facility will enable the client to purchase hardwood inventory at greater volume discounts, as the opportunities arise.
About TAB Bank
TAB Bank provides custom working capital solutions to commercial businesses across a wide range of industries. These solutions can be customized to meet the needs of companies in all stages of the business life cycle and during any economic conditions. TAB Bank does this through a variety of asset-based structures including Asset-Based Revolving Loans, Accounts Receivable Financing, Lines of Credit, and Equipment Finance. TAB’s lending options can also be combined with a full suite of business banking solutions and Treasury Management Services.
Ryan Gabriel is TAB Bank’s Vice President and Business Development Officer based in Seattle. He has over 20 years of experience in structuring asset-based facilities to meet client needs. He can be reached at 206.391.9886 or at ryan.gabriel@tabbank.com.
