Eclipse Business Capital LLC (“EBC”) announced that it has provided a $135 million senior secured revolving credit facility an e-commerce retailer.

The credit facility is secured by accounts receivable and inventory with the proceeds being used to refinance the existing line of credit. EBC’s demonstrated track record of executing quickly, coupled with its industry expertise, provided the borrower confidence that its business needs would be met.

As 2021 is drawing to a close, lenders and borrowers are asking what to expect in 2022. In March of 2020, when the first Covid-19 lockdowns began, there was a great deal of fear and uncertainty, both for individuals and for businesses. As the government pumped liquidity into the market, many businesses used those resources to survive through the period.

Now in late 2021, as the liquidity sources have expired, and businesses must generate cash flow based on their performance, the level of performance stress is increasing. Not only has the “free money” been used, but now businesses are dealing with inflation, commodity price changes, labor issues and supply chain disruption as stresses to their financial performance.