Success With: Working Capital Financing:
The Background:
Industry: Business Services
A 15-year-old business services company was utilizing an accounts receivable factor solution to help finance daily operations. As the business achieved success and revenue grew, the cost of borrowing became very expensive. The company was seeking an alternative to its current factor solution.
The Issue:
The management team met with lenders and tried to address the situation on its own but lacked the experience necessary to address all of their requirements. In addition, the company suffered process weakness in billing and collection that led to delayed cash collections.
The Solution:
The Business Lending Partners team identified the root cause of billing/collection issues and recommended improvements that accelerated the company cash collection and brought A/R over 90 days to under 5% of the total accounts receivable balance.
The implemented improvements allowed us to negotiate an Asset Based Line of Credit to replace the factor solution. The ABL solution increased borrowing capacity by 28% while reducing overall cost of borrowing by 50% along with less onerous lender reporting requirements.
Let Us Find A Solution for You
At Biz Lending Partners we share in your success. You are the reason we do what we do. Our experienced advisors have a track record of getting even the most difficult loan funded at the best possible rate and terms.
