Forest Capital Provides Factoring Facility to Law Firm
Forest Capital announced it provided a $350,000 factoring facility to a commercial law firm based in Maryland.
The full-service law firm represents clients across a range of commercial and litigation matters, with specialty practice areas in business restructuring and bankruptcy, technology and emerging growth companies, and insurance companies. They also represent financial institutions, private equity firms and investors on a national basis. As a startup, the firm experienced rapid growth due to an influx of new clients referred to the firm, along with legacy clients with which the firm’s partners had significant long-standing relationships. The welcome growth had not been anticipated and the firm did not have enough cash on hand to make payroll, pay vendors and cover debt. In addition, some clients were slow to pay, invoices were subject to client scrutiny and some cases they take on do not result in payment until the matter resolves. Facing a cash crunch, it was unable to obtain traditional bank financing.
In four days, Forest Capital was able to provide the factoring facility, providing the cash infusion the firm needed to meet its payroll and vendor obligations.
The firm was able to meet the immediate payroll and vendor obligations, relieving the cash flow pressure. It now continues to serve the needs of its clients, confident that it has access to a steady source of working capital, Forest Capital said in a press release.
Forest Capital provides accounts receivable financing to small- and middle-market companies with financing needs between $50,000 and $5 million across a wide breadth of industries in the U.S. and Canada.