Hennessey Capital Sees More Manufacturers Seeking Working Capital
ROCHESTER (WWJ) -- Hennessey Capital announced Wednesday that it continues to witness growth in the manufacturing sector. Of the new clients Hennessey Capital has secured in the past 60 days, 66 percent are manufacturers.
Cash flow and working capital needs are elevated when new growth and opportunities arise, said Mike Semanco, president and COO of the Hennessey Capital division.
"We are seeing a rebound in the manufacturing industry across the country," Semanco said. "Companies are taking advantage of our factoring and revolving lines of credit to finance new orders, pursue additional business opportunities, and purchase new equipment."
In mid-July, the United States Federal Reserve reported that U.S. manufacturing output rose in June for the second straight month as factories made more business equipment, autos, and electronics. Additionally, a survey by the Institute for Supply Management found that factory activity expanded in June after shrinking the previous month. New orders and export orders rose, a positive sign for future growth.
One particular new client reached out to Hennessey Capital because he had exhausted his personal funds and needed additional working capital to grow his manufacturing business. As a supplier of automotive components, aftermarket accessories, and manufacturing services, the Michigan-based company was seeing an uptick in business and interest from large auto companies. The owner wasn't in a position to infuse more cash and sustain the growth, so Hennessey Capital provided a $250,000 factoring solution to continue the positive momentum, all while satisfying the needs of new and future customers.
"Manufacturers and other businesses continue to turn to lenders other than banks for their financing needs because of the flexible structures and quick approval process," Semanco said. "We understand the importance of working capital and the urgency required to address immediate cash flow needs."
Other recent manufacturing deals completed by Hennessey Capital include:
* $500,000 factoring facility to a Massachusetts manufacturer of antimicrobial chemicals to replace their current lender and provide new availability for growth
* $250,000 factoring facility to a Rhode Island-based manufacturer of medical devices to replace their current lender and assist in funding new sales opportunities
* $500,000 A/R and inventory line of credit to a steel broker in Michigan to pursue additional growth
Other recent deals include:
* $500,000 factoring facility to a trucking company in Florida for post-acquisition working capital needs
Hennessey Capital is a division of Hitachi Capital America and provides revolving lines of credit secured by accounts receivable, inventory, and equipment along with factoring of accounts receivable for small- and middle-market companies across the United States. Facilities range from initial invoicing to $5 million and beyond and are used as primary loan facilities, for restructuring current debt, and funding seasonal or incremental sales growth.
Learn more at www.hennesseycap.com or by calling (248) 658-1100.
