eCapital provides $17.5m ABL to consumer products distributor

eCapital Corp., a tech-enabled specialty finance provider serving small and medium-sized businesses across North America and the UK, has closed a $17.5 million asset-based lending (ABL) facility to support the working capital needs of a high-volume, multi-generational consumer products distributor in the arts and crafts sector.

Headquartered in the Midwest, the distributor operates at significant scale with a long-established presence in its category and a national distribution footprint. The company’s inventory-intensive operating model, broad supplier network, and continuously expanding product catalogue require reliable, flexible liquidity to support seasonal demand cycles, fund inventory builds, and enable frequent new product introductions.

Referred to eCapital by the company’s financial advisor, the business sought to replace a more restrictive bank facility that no longer aligned with its operating model or growth trajectory. eCapital structured a tailored ABL solution that increased overall availability through higher advance rates on both accounts receivable and inventory. The facility also accommodated certain operational ineligibles and permitted cash interest on subordinated debt, providing the flexibility needed to maintain uninterrupted supply and fulfilment operations during the transition.

“Our focus is on delivering solutions that align with how these companies operate and where they are in their growth cycle.”

“By partnering closely with the management team, our goal was to ensure the business had the liquidity it needed to operate confidently and without interruption.”

With the new $17.5 million ABL facility in place, the distributor is well-positioned to manage peak seasonal demand, strengthen supplier relationships, and continue expanding its product offering.