Following Substantial Institutional Capital Raise Republic Business Credit Enhances Financing With Working Capital Facility From Wells Fargo Capital Finance
NEW ORLEANS, LA (March 17, 2011)–Republic Business Credit is pleased to announce its closing of 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. This also enables Republic Business Credit to provide factoring / financing to small business and mid-sized companies in the Gulf South region and across the country with the liquidity they need to capitalize on growth opportunities presented by a recovering economy and thereby build their businesses.
“We are proud to have established this relationship with the Lender Finance division of Wells Fargo Capital Finance,” said Allen E. Frederic, Republic Business Credit’s chief executive officer. “Having the Wells Fargo team as a financial partner gives us the confidence we have the support to meet our goals and growth objectives.”
Republic’s strategy is to provide 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.
“We are pleased to have established a relationship with Republic Business Credit,” said Andrea Petro, division manager of the Lender Finance division of Wells Fargo Capital Finance. “We look forward to supporting Allen Frederic and Stewart Chesters along with the company’s senior management team in its plans for the successful growth of their new business.”
Wells Fargo Capital Finance provides traditional asset-based lending, specialized senior secured financing, accounts receivable financing and purchase order financing to companies across the United States and Canada. Dedicated teams within Wells Fargo Capital Finance provide financing solutions for companies in specific industries such as retail, software publishing and high-technology, commercial finance, staffing, government contracting, timeshare development and others.
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.
Interested parties may contact Republic Business Credit, LLC, at 1-866-722-4987, www.republicbc.com
Republic Business Credit provides working capital 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. Headquartered in New Orleans with offices in Chicago and Houston it serves businesses throughout the U.S.
Republic Business Credit
Stewart Chesters, 504-262-8600
SOURCE: Republic Business Credit