Last month New Orleans-based Republic Business Credit closed a $30 million senior secured facility with Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC). Coupled with its recently announced Institutional capital raise, the first tranche of a $30 million equity raise putting Republic in a strong capital and liquidity position.
Republic provides working capital financing for rapidly growing, turnaround and start-up companies that have annual sales up to $60 million and facility needs of $50,000 to $5 million by utilizing factoring and receivables finance. It is targeting a variety of industries, including energy, oil and gas, manufacturing, temporary staffing, distribution, transportation, high-tech, safety and security, government contracting, marine, printing, janitorial and others.
The Receivables Exchange, another New Orleans company, is somewhat of a competitor. But rather than directly providing financing to its clients, the Receivables Exchange has developed an online platform where small businesses can auction and finance their receivables with a company like Republic.
Earlier this year, Republic closed on institutional capital financing and commenced operations, headquartering in New Orleans with regional offices in Chicago and Houston. “The addition of this facility from Wells Fargo Capital Finance supports our ability to provide working capital facilities to small to mid-size businesses throughout the U.S.,” said Stewart Chesters, chief operating officer of Republic Business Credit. While many lenders are strapped with problem loans these days and are not lending, Chesters pointed out that Republic Business Credit is itself a team of entrepreneurs looking to provide the cash to support clients that have the same can-do philosophy. “We make decisions based on our real-world experience and are well-placed to support growing enterprises throughout the country.”
Republic also will look for opportunities to purchase participations from other factors and will consider acquiring companies and portfolios in the working capital arena where those transactions are financially or geographically compelling.