Bibby Financial Provides $500,000 A/R Facility for Power Contractor
Bibby Financial Services announced it has provided a $500,000 A/R facility for an Ontario-based electrical contractor.
The company supplies parts and equipment that supply electricity in portable classrooms, construction sites and other remote areas. It
was recently acquired by an experienced industry professional who is well-connected in the region. As a result, the company experienced a steady increase of new business over the past six months.
To support its growth, the contractor first turned to a bank for a traditional loan. However, due to the high demand for their services, the company knew it would quickly need more cash-flow than traditional financing could support.
The company turned to Bibby Financial Services for an accounts receivable funding facility of $500,000 to buy out the bank’s line of credit and to create additional working capital finance.
“In this case, the company did what many small businesses do — turn first to a bank for funding. But as the business became more successful, the bank eventually could not keep up with its exponential growth,” said Bob Lall, managing director, Bibby Financial Services, Canada. “Bibby Financial Services was able to offer the company a more flexible cash-flow solution that would fuel its business growth.”