Veritas Financial Provides $10MM to Factor, PO Funding Provider
Veritas Financial Partners provided a $5 million senior secured revolving line of credit and $5 million co-lender facility for Connecticut-based factor and purchase order funding provider.
Founded in 1995, this privately-held finance company primarily serves small to mid-sized businesses throughout the US with A/R factoring and purchase order funding services. The company is a “non-traditional” factor and PO provider. The company serves clients of diverse business types including staffing companies, service providers, distributors, importers and light manufacturers. Prior to receiving financing from Veritas, the company funded its advances with equity, an arrangement that was both expensive and non-scalable. In addition, the company was turning away potential business that was too large for its then current balance sheet.
Veritas Financial Partners closed a $5 million senior secured revolving line of credit for the company secured by the borrower’s accounts receivable and PO advances. By partnering with Veritas, the company was able to fund advances with a blend of debt and equity. As such, the company received the financing needed to fund new originations to continue to grow its portfolio.
Veritas Financial Partners is a national financial services firm that provides senior secured credit facilities to small and medium-sized businesses.