Ridgestone Bank has funded a Small Business Administration loan of $4.64 million to Kenosha-based Xten Industries to refinance the company’s existing debt and provide additional line availability.
Xten Industries is a contract manufacturer and injection molder providing service to Midwestern manufacturers.
“After being turned down by numerous banks, Xten Industries was referred to Ridgestone by another bank who was familiar with Ridgestone’s SBA experience, suggesting we partner up. Ridgestone would provide the fixed asset financing while the other bank supplied the revolving line of credit,” says Jessie Hagan, vice president at Ridgestone Bank. “In the end, Xten worked with three banks that collaborated to provide different loan products, showing that complicated doesn’t mean impossible. The deal was closed and the client is very happy.”
Like many businesses, Xten Industries experienced a sales decrease in 2009 but was still a solid business with good cash flow. However, the company’s assets, which supplied its collateral, had dropped in value, causing Xten to break covenants with their bank, resulting in hefty fines and fees. When the company needed a loan, Xten could not find enough collateral value to get one, and its bank asked them to leave.
“We talked with at least 20 banks, and none of them could come up with the solution that Ridgestone did,” said Matthew Davidson, president at Xten Industries. “Not only was this process incredibly professional and efficient, it was wrapped up in four short months. We can now focus on our business.”
Ridgestone Bank is a privately-held bank with branches in Brookfield, Wis., and Schaumburg, Ill. Currently, Ridgestone Bank is the No. 1 SBA lender in Illinois.