Asset Based Financing Relieves Cash Flow Constraints for IT Staffing Firm
The Company, a Southeastern based IT contract staffing firm has been operating for the last five years and has over 80 employees. The Company provides IT staffing as well as consulting services to large scale customers throughout the U.S.
Challenge:
The Company has seen exponential growth in the staffing business and including a large technology provider. The previous lender struggled with accommodating the concentration limits and over advances associated with a large customer resulting in high fees for the Company. With these cash flow constraints in place the Company was searching for a working capital partner that understood their current needs and could support their growth strategy.
Solution:
Seacoast was able to structure an asset-based facility that would extend terms to the Company’s largest customers, relieving the cash flow constraints. Seacoast provided an asset-based facility and a relationship oriented team which the Company was seeking in a financial partner.
Results:
– Increased liquidity
– Increased Advance Rate
– Provided Extended Terms to Customers
– 3 Weeks to Fund and Close
