ABOUT THE AUTHOR
The Client
First Harvest*, a California agricultural distributor with a business rooted in the nut industry for over 55 years, operates within a highly seasonal supply chain. They work closely with growers and vendors where timing, payments, and trust are essential. Decades of reliability have made those relationships stronger than ever, even as market conditions fluctuate.
The Situation
Despite shifts in commodity nut prices, the company continued business as usual, honoring vendor commitments and supporting its grower network. Then prices from their vendors rose exponentially. At the same time, collateral values shifted and changed how the company’s senior bank assessed risk and extended credit. All that while upcoming Q4 required liquidity to meet large vendor payments, creating a situation where First Harvest needed to realign capital with existing operations.
The Challenge
What the business needed to account for included:
- Maintaining liquidity during seasonal slowdowns
- Preserving long-standing relationships
- Managing paper losses
- Navigating reduced bank credit
Meanwhile, traditional lenders rely heavily on collateral values linked to commodity pricing, resulting in a gap between valuation and the company’s operating reality. More credit was not forthcoming from their senior bank, and other lenders responded to applications with the same hesitance. That’s when their senior advisor referred them to National.
Our Approach
National Business Capital structured a $5 million term loan aligned to the company’s seasonal operating cycle, while respecting the existing senior lender position. Because we see beyond P&L and what a temporary balance sheet shows, our team can take history, vision, and potential into account when underwriting. The structure emphasized timing and flexibility, allowing the business to meet near-term liquidity needs without disrupting long-term relationships or operational stability.
The Outcome
With capital structured to match the rhythm of the business, First Harvest was able to:
- Make large seasonal vendor payments on time
- Preserve trust across its grower and supplier network
- Navigate winter seasonality without disruption
- Maintain continuity through temporary market pricing shifts
The funding provided stability during a period when access to traditional credit tightened.
Why This Is True Capital
This transaction was about protecting value built over decades. Reliability, reputation, and consistency across a supply chain don’t show up clearly on a balance sheet, but are foundational to True Capital.
Why National Business Capital
We work with businesses whose success depends on timing, structure, and real-world operating fit. When traditional capital frameworks fall out of step with how a business actually runs, we bridge the gap.
If you’re planning the next growth phase of your business, we’re here to make sure you can get the funds to get it done.
