Seacoast Business Funding Provides Multi-Million Dollar Accounts Receivable Ledgered Line of Credit Facility to Leading Electronic Controls and Systems Manufacturer

Introduction:

The client is a well-established manufacturer of electrical control systems, providing high-quality industrial controls, electrical and automation engineering, and systems integration to a wide range of industries in the Southeast and globally. With 16 years of experience delivering complex and technical systems, the client remains a leading player in the manufacturing industry, continually raising the bar and exceeding expectations.

Challenge:

In recent years, the client faced significant challenges with cash flow constraints, primarily caused by the overhead costs associated with additional staff hired to handle contracted new projects. Unfortunately, the COVID pandemic exacerbated their financial strain, slowing down the start of these contracts. The management team reached out to their previous lender to expand their line of credit, hoping for additional capital to support their growth strategy and relieve their constraints. However, their previous lender was unable to increase the line, leaving them with the need for a fast funding option.

As the owner recognized their company’s situation, they had to infuse a significant amount of personal funds into the business to maintain operations. While this provided temporary relief, it also demonstrated the need for a more sustainable solution.

Solution:

After evaluating the company’s business, Seacoast Business Funding (SBF) was able to provide the client with a reliable solution to their cash flow constraints through the use of a $3 million A/R ledgered line of credit. The SBF team recognized the value in the client’s contracts along with its strong customer base.

The facility fulfilled the company’s short-term working capital needs while allowing for future growth. The quick turnaround of getting funded in less than three weeks was a huge stress relief.

Results:

In recent years, the client faced significant challenges with cash flow constraints, primarily caused by the overhead costs associated with additional staff hired to handle contracted new projects. Unfortunately, unforeseen circumstances exacerbated their financial strain by delaying the start of these projects. The management team reached out to their previous lender to expand their line of credit, hoping for additional capital to support their growth strategy and relieve their constraints. However, their previous lender was unable to increase the line, leaving them with the need for a fast funding option. As the owner recognized their company’s situation, they had to infuse a significant amount of personal funds into the business to maintain operations. While this provided temporary relief, it also demonstrated the need for a more sustainable solution.

With the added boost from SBF’s ledgered line, the client was able to bring their accounts payable current, allocate extra resources to pursue capital improvements, and stay ahead of their projects’ needs. Reliable, steady cashflow from the facility enabled the client to engage new prospects and meet their existing customers’ growth.