Challenge

Due to the nature of Christmas by Krebs’ industry, the company is a highly seasonal borrower, depending on inventory financing for more than half of the year.

Solution

Siena was able to structure a deal that included an over-advance when Christmas by Krebs was out of season to provide the liquidity the company needed. In addition, we were comfortable working out a structure for Christmas by Krebs’ German affiliates that provided the ability to move funds among companies.

Result

Christmas by Krebs has been a satisfied and loyal client, as Siena has exhibited both commitment and flexibility. The company is still with Siena, utilizing us to continue its evolution from a business rooted in traditional ornament making to creating more customized, higher-end ornaments.

Christmas by Krebs was our first client, and five years later they are still with us. The financing we have been providing to them has been something that is generally outside the norm, with the inventory loan and seasonal over-advance requirements. These two generally make for a difficult structure, but we have been able to get it right and will continue to work with them as they transition their business.

Steve Sanicola
Director Risk & Portfolio Management, Siena Lending Group