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For many manufacturers, the busiest months of the year demand careful planning. But the quieter months can be just as important.
At SCP Limited in Auburn, Indiana, Chief Financial Officer Davis Deane has been focused on making better use of that time.
The company is expanding into a new line of gas valves while continuing to manufacture the igniters that have long been central to its business. That requires investment, coordination, and enough financial flexibility to prepare before production demands increase.
For SCP, the challenge was not simply finding working capital. It was finding an approach that fit the way the business operates.
Most people don't spend much time thinking about what makes their oven work. Davis Deane didn't either, at least not before joining SCP Limited.
The Indiana manufacturer produces ignition components used in appliances such as ovens, ranges, and heating equipment. Its products serve original equipment manufacturers, often called OEMs, as well as other customers in the appliance industry.
The components may be small, but they are an important part of the finished products.
SCP's business has evolved over time. What began as a smaller operation focused on pilot-light products developed into a manufacturer of igniters and, more recently, gas valves.
Today, that product expansion is an important part of the company's plans.
For Deane, who joined SCP as CFO in 2025, the financial challenge involves supporting that next stage while continuing to manage the company's existing operations.
"We're a pretty cyclical business," Deane explains.
For SCP, the busiest production period typically arrives during the final months of the year, particularly September through December.
That creates a familiar problem for seasonal manufacturers. Work does not always arrive evenly throughout the year, even when investments and operating expenses continue.
During slower periods, a business may have opportunities to prepare for upcoming demand, improve operations, or invest in new products. But those activities still require financial resources.
For SCP, one priority was its developing gas valve line.
The company had already spent several years investing in that product. By the time of the September 2026 interview, it had begun shipping gas valves and was preparing for the next phase.
The question was how to keep moving forward without waiting until the busy season to complete that work.
Introducing a new manufacturing product involves more than developing the product itself.
A company also has to consider production schedules, available resources, and the effect of new work on existing operations.
SCP wanted to continue investing in gas valves while maintaining its established igniter business.
According to Deane, the company's financing arrangement allowed it to put cash back into the business during a slower part of the year.
That helped SCP move work on its gas valve line forward instead of concentrating those activities during the months when existing production demands were already higher.
It also gave the company greater flexibility in planning its manufacturing schedule.
The benefit was practical. SCP had more room to spread manufacturing activity across the year rather than trying to accomplish everything at once.
The experience offers a useful lesson for other manufacturers: the timing of an investment can matter as much as the investment itself.
SCP's financing needs did not fit neatly into a single category.
The company had previously used asset-based lending, often called ABL. This type of financing generally uses eligible business assets, such as receivables or inventory, as collateral.
But SCP was looking for an arrangement that reflected its particular circumstances.
Deane describes the eventual structure as a combination of different financing elements, including an asset-based component. It was neither a conventional ABL arrangement nor a straightforward traditional loan.
Working through that structure took conversations, explanations, and time.
An important part of the process was SCP's existing relationship with LaCour Miller, Managing Director of Specialty Finance at Always.bank.
SCP had worked with Miller and his team previously.
The company later moved to another financial institution as its financing needs changed. Deane had joined SCP during that transition and had already developed a relationship with the original banking team.
When circumstances changed again, SCP reconnected with Miller and began discussing its options.
Deane recalls the conversations as an effort to understand both the company's needs and what a bank could reasonably provide.
Rather than starting with a predetermined financing structure, the discussions centered on how SCP actually operated.
There were questions to answer on both sides. Certain ideas required adjustments, and the financing structure took time to develop.
For Deane, those conversations mattered because they helped the company understand its options and make an informed decision.
Financing was only one part of SCP's banking experience.
Deane also points to something more practical: having access to the financial information he needs to do his job.
He had experienced banking arrangements where getting information meant relying on reports and updates sent by someone else.
With the platform available through SCP's current banking relationship, he can sign in and review information directly.
That access makes a difference in the daily work of managing the company's finances.
But technology alone was not what stood out.
Deane also describes a relationship built on communication with Miller and other members of the banking team.
When he has questions, he knows whom to call. He values receiving answers, understanding the reasons behind decisions, and having people who know the business.
"I feel like I know these people. They're part of our team," he says.
For a CFO managing financing decisions and manufacturing operations, that familiarity has value beyond the terms of a particular agreement.
By September 2026, SCP had begun shipping products from its developing gas valve line.
Deane expected the product category to become a larger part of the business in 2027 and 2028, although those expectations remained plans rather than established results.
For now, the focus is on continuing the rollout while supporting SCP's existing igniter production.
The financing arrangement has given the company additional flexibility in deciding when and how to invest in that work.
The broader story is one of preparation.
SCP is using its knowledge of its products, its manufacturing schedule, and its financial needs to prepare for what comes next.
For other manufacturers facing seasonal swings, the experience is a reminder that there may be more than one way to approach working capital. Understanding the business is the starting point.
Working capital can help manufacturers meet operating needs or fund business investments during periods when production demand is lower. In SCP Limited's case, its financing arrangement allowed the company to direct cash into its developing gas valve line during a slower period. That gave SCP more flexibility in scheduling manufacturing activity before its busiest months.
Asset-based lending generally uses eligible assets, such as receivables or inventory, to support borrowing availability. Traditional financing may rely on a different combination of credit factors and repayment terms. SCP's arrangement included an asset-based component alongside other financing elements. Its experience illustrates why the appropriate structure depends on the individual business and its circumstances.
Financing terms matter, but they are not the only consideration. SCP's CFO emphasized the importance of understanding the business, receiving clear explanations, having responsive contacts, and being able to access financial information through an online platform. These were important factors in his experience, particularly while the company was managing an evolving product line.
Every manufacturing business has its own operating cycle and financial needs.
If you're evaluating working capital or other financing options, learn more about asset-based lending at Always.bank and connect with our Specialty Finance team to discuss your business.
Always.bank is the digital banking division of 22nd State Banking Company. Member FDIC. Financing is subject to review and approval.
