Robert Naglick, CFO
B&P - Background• Located in Saginaw Michigan• Manufactures mixing, separating and compounding  equipment for the plastics...
Key Issues• Need for additional working capital funding  availability.• Repayment risk associated with export sales and  r...
Solution• $5 million Export Line of Credit Agreement with JP Morgan Chase,  guaranteed by Export-Import Bank of the U.S.• ...
11 Success Stories Bob Naglick
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11 Success Stories Bob Naglick

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11 Success Stories Bob Naglick

  1. 1. Robert Naglick, CFO
  2. 2. B&P - Background• Located in Saginaw Michigan• Manufactures mixing, separating and compounding equipment for the plastics, chemical and pharmaceutical industries.• Equipment orders range in price from $125,000 to $2.5 million.• Production cycles range from six to fourteen months.• B&P also sells replacement parts. Parts orders average $50,000.• Annual Revenues total $30 million.• Approximately 50% of equipment and parts sales are exported to Asia, Europe and Latin America.
  3. 3. Key Issues• Need for additional working capital funding availability.• Repayment risk associated with export sales and receivables.• Export-related Work in Process inventory financing over six to fourteen month production cycle.• Requirement to issue performance related standby letters of credit and bid bonds.• A single export order can be significant to the balance sheet.
  4. 4. Solution• $5 million Export Line of Credit Agreement with JP Morgan Chase, guaranteed by Export-Import Bank of the U.S.• B&P also has a separate $5 million domestic line of credit with JP Morgan Chase.• B&P’s cost of Working Capital Guarantee Program – Annual fee is assessed on the Export Line Facility.Borrowing Base Collateral Domestic Line Advance Rate Export Line Advance Rate Accounts Receivable 80% 90% Inventory – Raw material and WIP 50% 75% Reserve for Standby L/C’s (100%) (25%)Result• B&P has been able to achieve steady export growth.

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