https://www.youtube.com/watch?v=mT43r41dMB0
Driving manufacturing innovation and efficiency
with ABL financing
CLIENT OVERVIEW
An established US-based manufacturer of commercial water irrigation systems has long been recognized as a national leader in delivering high-quality, durable products to agricultural, landscaping, and commercial clients. With a reputation built on performance and reliability, the company supplies a vast network of distributors and commercial contractors across the country. However, improved design features from competing manufacturers have led to reduced sales projections.
To stay competitive and regain market share, the company must now invest in innovation, enhance product offerings, and explore new strategies to drive demand.
THE CHALLENGE
The company faced growing pressure as competitors launched advanced, eco-efficient irrigation systems aligned with stricter regulations and rising demand for sustainability. To maintain its position, the manufacturer identified two critical areas for investment. First, in Research & Development, the company aimed to accelerate innovation by developing advanced system components focused on optimizing water pressure, ensuring uniform distribution, and enhancing durability. Second, it targeted operational efficiency through equipment upgrades and automation to streamline production, boost output, and reduce costs. Executing these strategic initiatives required a significant capital injection beyond the company’s current credit capacity.
THE SOLUTION
To meet its growth and innovation objectives, the manufacturer turned to eCapital for a more flexible financing solution. After evaluating the company’s financials and growth forecasts, eCapital structured a $35 million asset-based lending (ABL) facility.
The financing package was secured by a combination of:
- A robust sales ledger representing a healthy volume of eligible accounts receivable.
- Eligible equipment assets with strong market value, providing additional collateral strength.
Importantly, the facility was designed with the confidence that the company would break even within eighteen months and be able to pay down the loan within that period.
THE RESULTS
With eCapital’s support, the manufacturer is now empowered to:
- Accelerate R&D to launch next-generation products that meet environmental standards and consumer demand.
- Automate production processes, reducing manual labor costs and increasing overall efficiency.
- Strengthen its competitive position in both domestic and global markets.
- Improve operational agility, responding more quickly to shifts in regulatory or market conditions.
This ABL facility is not just a financial boost—it’s a strategic lever, enabling this industry leader to stay ahead of the curve, protect its market share, and lead the next wave of irrigation innovation.
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