Thriving Company Needed Increase in Line of Credit to Support Growth
The client is an international and domestic provider of oil field and drilling consultants. The company has been in business for 16 years and has built a strong brand providing independent contractors/consultants with steady opportunities within the oil industry. The company had seen a small slow-down, but recovered over the last two years with a large increase in customers resulting in significant growth.
With the recent onset in rapid growth, the Company was outpacing its current working capital solution. The Company had been utilizing a factoring facility for several years, but the credit line was no longer sufficient to meet their needs. Due to the current funders lending limits they were unable to extend the Company’s line of credit.
In addition, the company is a leader in their industry because of their competitive edge. Unlike their competition the Company pays their consultants weekly instead of on a bi-monthly basis. Without the line increase in place the Company was facing a significant disadvantage which could ultimately affect its operations and reputation.
Having built a significant relationship with the Company the previous funder referred the client to Seacoast Business Funding to assist in solving the Company’s liquidity issue. Seacoast was able to increase the Company’s line of credit by $7 million. Providing the expanded capital the Company needed to support their current and continued growth trajectory.
In addition, Seacoast was able to increase the advance rate from their previous factoring facility freeing-up additional working capital. Lastly, Seacoast was able to close and fund the facility within 2 weeks. Establishing the facility quickly for the Company prevented any operational or reputational issues from occurring.
- 2 Weeks to Fund and Close
- Improved Liquidity with Increased Line of Credit
- Increased Advance Rate