Business Capital Closes Facility for Military Cleaning Service Provider
Business Capital secured a multi-tranche credit facility for a provider of industrial preservation and cleaning services to the Navy, military & commercial Marine industry.
The company provides heavy duty cleaning services and surface treatments to military and commercial agencies in the marine industry, including the largest naval fleet installations in the world. The company specializes in the removal and replacement of non-skid surfaces, as well as cleaning and preservation of tanks, bilges and piping systems on U.S. Naval and Coast Guard vessels located in the major shipyards of San Diego, Washington and Florida.
Due to the economic downturn and constrictions in government industries, revenue sources were impacted. The decline in income combined with high fees to the incumbent lender, lead to working capital constraints and a high debt load which limited the company from bidding on new work.
Business Capital was able to understand the complex nature of the client’s highly specialized industry, their situation and restructuring plans to increase financial profitability.
Business Capital structured a combination $1,000 accounts receivable line of credit and $500 million term loan credit facility utilizing two lenders targeted for their proficiency in each asset category. The overall cost of capital was cut in half and significantly increased the advance rates on the collateral. This allowed the company to take advantage of pricing incentives, realize savings, increase profits and thereby be awarded several long-term contracts securing business growth for the future.