nFusion Capital provides $6m ABL facility to vaporization hardware wholesaler

nFusion Capital has provided a $6 million asset-based lending (ABL) facility to a privately held wholesale distributor and customisation provider of premium vaporization hardware products.

The facility will provide additional working capital to support the company’s operational requirements and expansion plans as it responds to increased customer demand.

Operating in the global cannabis and CBD vaporization hardware markets, the unnamed company had previously grown without taking on debt but was experiencing working capital pressures as a result of the timing between expenditure and customer payments.

Higher demand required the business to make upfront investments in inventory, labour and other operating costs, while capital remained tied up in longer accounts receivable collection cycles.

The company sought additional liquidity without raising equity or relying on conventional bank funding and subsequently worked with nFusion Capital to structure an asset-based facility.

The $6 million facility uses the company’s existing assets to provide working capital and is structured to increase in line with the growth of its eligible asset base.

The company’s CEO said: “nFusion helped provide the perfect balance of financing we required by pairing the appropriate amount of non-dilutive capital to our existing assets and providing a facility that expands with our growth.

“This is a partnership that will greatly contribute to business success, and the service and attention we have received have been world-class.”

Asset-based lending can provide growing businesses with access to working capital secured against assets such as accounts receivable and inventory, with available funding potentially increasing as the underlying asset base expands.

“We collaborated with ownership to determine the optimal financing structure, effectively transforming their working assets into flexible capital. We are proud to serve as their financial partner, providing the immediate agility needed to sustain their upward trajectory.”