nFusion Capital provides $2.5m ABL facility for furniture manufacturer

nFusion Capital, a provider of financing solutions for small and middle-market businesses, announced it has closed a customised US$2.5 million asset-based lending (ABL) facility for a Pennsylvania-based office furniture manufacturer.

The flexible financing also includes a $5 million accordion feature, offering additional liquidity to support growing demand and a strong order pipeline.

Approaching its 100th anniversary, the company designs and builds modern, modular commercial office furniture – including cubicles, conference tables, and storage solutions – tailored to each client’s unique workspace. Known for its craftsmanship and customer service, the company sells directly to businesses across the US.

After receiving a surge of large, simultaneous orders, the manufacturer needed greater working capital and sought to transition from purchase order financing to a more scalable ABL structure. However, its business model – centred on custom orders, limited repeat customers, and small-to-mid-sized clients – posed challenges for traditional lenders.

Recognising the company’s strong fundamentals, nFusion Capital developed a creative financing solution that maximised borrowing availability by leveraging both accounts receivable and inventory, including the intrinsic value of aluminum used in production.

“The Company needed a lending partner willing to look beyond the numbers and understand the quality of their assets,” said Brice Reid, Senior Vice President of Business Development at nFusion Capital.

“We spent time with the owners to gain a deeper understanding of their customer base and better assess and manage any potential risks related to the collection of their accounts receivable. Additionally, we developed a creative structure for lending against inventory by considering the intrinsic value of the aluminum used in production.”