Gibraltar Business Capital (“GBC”), a non-bank, middle market asset-based lending company is pleased to announce the successful closing of a $15MM credit facility to support Flux Power (NASDAQ: FLUX). The credit facility is secured by the assets of the company including accounts receivable and inventory and incorporates an accordion that allows for up to $20MM total credit facility at the borrower’s option. The newly established facility supports the company’s working capital requirements and facilitates the refinancing of its previous credit facility with Silicon Valley Bank.
California-based Flux Power designs, manufactures, and sells advanced lithium-ion energy storage solutions for electrification of a range of industrial and commercial equipment, including material handling, airport ground support and stationary energy storage. As a developer of advanced lithium-ion energy storage solutions, Flux Power is experiencing growing product demand and the need for flexible, reliable sources of working capital.
Gibraltar’s ability to creatively structure a credit facility that provides maximum advance rates on assets and flexible covenants will help Flux Power meet current demand, while setting a foundation for future growth.
“We were impressed by Gibraltar’s leadership and their creativity and persistence in setting our company up for future success and growth,” said Chuck Scheiwe, Flux Power CFO.
Gibraltar’s long-standing reputation in the industry along with its synergistic relationships with banking partners allows the company to craft win-win financing solutions. This was the case for Flux Power, which was connected to Gibraltar through a complementary banking relationship.
By working with banking and other financial partners, GBC has continued to support companies seeking flexible capital to support growth. Expanded size capabilities and hold levels allow Gibraltar to serve companies with greater capital needs as they grow their business.
“We were pleased to provide a reliable, flexible working capital solution to Flux Power to enable further growth and to advance their goal of driving adoption of clean, safe, and innovative energy solutions,” said Scott Winicour, CEO of Gibraltar Business Capital. “This transaction showcases our strengths working across the financial ecosystem to deliver creative working capital solutions that address the needs of multiple stakeholders.”
