Cove Consulting
A capital solution for tariff pressure
A profitable design firm was already moving production to the U.S. when tariffs hit overnight. The strategy was still sound, but the timing got tighter fast.
A reshoring strategy, a tariff spike, and the capital that kept both on track
Cove Consulting had spent years building a strong reputation in the architecture and design world. The company became known for custom concrete finishes, terrazzo, handcrafted tile, and stone. With locations in New York, San Francisco, Georgia, and Southern California, they had built a brand clients trusted.
At the same time, the business was in the middle of a major strategic move: bringing production stateside.
Overseas manufacturing had created real operational risk. Cement products are heavy and fragile. Breakage during international shipping caused delays, disrupted installs, and put pressure on client relationships. Just as important, proprietary finishes and production methods were exposed each time production ran through a foreign factory. For a company that competes on the strength of its original designs, that was not a small issue.
Moving production to Georgia gave the business more control over quality, timelines, and intellectual property. The plan was already in motion—then tariffs hit.
The Situation
New tariff announcements sent immediate shockwaves through the market. For Cove Consulting, it changed the economics of a transition already underway.
The Georgia facility depended on specialty raw materials—aggregates, pigments, and other inputs—with long international lead times. Suddenly, those materials faced pricing instability that hadn’t existed a week earlier. There was a narrow window to secure inventory at more predictable costs, but it wouldn’t stay open for long.
This is what made the moment so urgent. The business was profitable. The reshoring plan was sound. The financials were strong. Under normal conditions, a traditional lender may have been a reasonable option.
But this wasn’t a normal timeline.
Tariffs do not wait for committee review. They don’t pause for collateral analysis or long funding cycles. The opportunity to act had a shelf life, and the business needed capital that could move at the speed of the moment.
The Challenge
Overnight, the economics of their move changed. A policy decision made thousands of miles away landed directly on their doorstep. There are few things more frustrating than running your business well, and having outside forces rewrite the math overnight.
Cove Consulting had already committed to bringing production home. The facility was coming online, the infrastructure was in place, and the long-term vision was clear. Then tariff announcement put immediate pressure on cost, timing, and execution.
A bank might have gotten there eventually. But eventually wasn’t an option. Every week of delay meant raw material costs climbing, supply lead times stretching, and a domestic transition that had taken years to plan, losing the momentum it needed to land.
Their advisor recognized what the moment required and referred them to National to assess the opportunity quickly.
A dedicated Finance Business Advisor at National looked at the business for what it was: an established, profitable company with a clear strategic plan and a time-sensitive need for capital. This was a business making a smart operational move and needing the right funding structure to keep it on track.
Our underwriting team saw two things immediately. First, the company had the operational strength to put capital to work effectively. Second, what looked like an inventory purchase on paper was actually a strategic move to protect pricing, secure critical inputs, and support the ramp-up of domestic production.
Cove Consulting secured a $1 million Cash Flow Financing structured around the strength of the business and the urgency of the opportunity.
With funding in place, Cove Consulting secured raw materials before costs moved higher.
The company protected the momentum behind its reshoring strategy and strengthened control over production, quality, and fulfillment.
The business came out of the disruption with a stronger manufacturing base, more control over execution, and the inventory runway needed to keep moving forward.
For the partner that referred them, the outcome was its own kind of validation. In a moment when the answer could have been “I’ll look into it,” they came back with a solution.
Why This Works
On paper, this was a working capital move.
In practice, it helped protect a multi-year reshoring strategy at a critical point in time.
That is the difference between capital that simply fills a gap and capital that supports a business decision with real long-term value. When external pressure changes the economics overnight, the companies that stay on track are often the ones that can act before the pressure turns into delay.
Cove Consulting had a sound plan. National helped them execute it.
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