Working Capital Solution Creates Growth for Extra Duty Company
The client is a northeastern based company founded in 2015. They provide administrative support to law enforcement agencies in the management of their extra duty programs. The company provides pre-screening of new account requests, scheduling, billing and collections, and payroll processing, thus freeing up administrative resources for their governmental customers.
The company has had a history of profitability but growth opportunities were static due to capital constraints with increasing payroll demands. The company was finding traction with police organizations across the country for their services and needed additional funding to support their growth. Their previous factor was only advancing accounts receivables from one customer and did not have the funding capacity to expand its credit line.
All additional funding was being provided by the primary shareholder of the company. The company knew this was not a sustainable working capital solution to support their growth. They needed to find another factor that could offer them a larger factor facility and a reliable solution.
Seacoast Business Funding was able to structure a $1.5 million credit line and outsource the cash application and account receivable functions. Since closing the transaction, SBF proactively increased its commitment to the Company by raising its maximum credit facility to $2.0MM as well as increasing their advance rate to 92%. As a result of our solution the company’s monthly revenue has increased 54%.
– Increased Working Capital with Advance Rate up to 92%
– Grew Monthly Revenue 54%
– Scaled Credit Line to Meet Business Needs
– Lowered Banking Fees
– 3 Weeks to Underwrite and Fund