Connor Corp. – Benefited from a $4MM ABL
Connor Corp. benefited from a $4 million asset-based line of credit to corner a market on engineered products for industrial applications. After years of a successful partnership with Gibraltar, the company has transitioned from alternative financing to traditional bank financing.
The Fort Wayne, Ind.-based producer of rubber, steel, brass or plastic parts and sub-assemblies for industrial applications, needed an asset-based line of credit to help it move forward with its “one-stop shopping” customer-service approach. Connor handles sales, marketing, engineering and distribution with all the manufacturing needs met by a multitude of manufacturing partners.
Using inventory and accounts receivable as collateral, the initial ABL funding was granted while Connor honed its craft of handling all manufacturing, logistics (freight, duty and customs), and vendor payments for its customers while providing full engineering and quality-control support services.
Over the nearly nine-year relationship, Gibraltar almost doubled Connor’s credit line to $4 million. Gibraltar also frequently accommodated Connor with variable financing terms that could account for such annual events as the Chinese New Year, which can last as long as 23 days.
“Gibraltar helped us grow,” says Jack Lawson, Connor’s co-owner and chief financial officer. “We needed that financial flexibility for special circumstances like the Chinese New Year because so much of our manufacturing came out of the Far East.
“Gibraltar never faltered and proved to be an invaluable partner to us,” he added.
Connor Corp.’s financing scenario is a common one, according to Jeremy DeBoer, Gibraltar senior vice president. “No one likes to turn down a customer, so we work with traditional bank financing partners to provide alternative financing solutions to their customers when they can’t,” says DeBoer. “And when clients thrive, moving to traditional financing can be a natural next step, as is the case with Connor Corp. They’ve been an excellent client and we’re proud that we were able to assist them over the years as they built a very successful business.”