LSQ originated twin $2 million invoice finance facilities for Powerhouse Resources and Outage Solutions, two sister companies serving the electric utility industry.
South Carolina-based Powerhouse Resources provides staffing solutions for traditional power-generation facilities, while Florida-based Outage Solutions serves nuclear energy facilities, primarily as service experts for pumps and rotating equipment. Since the two companies began the merger process in January, their client bases have grown, necessitating the need for additional capital to expand their service offerings.
“Traditionally, the way the company has grown has been through self funding and private investment, which can be taxing and expensive” Joe Klecha, president and CEO of Powerhouse Resources, said. “We started talking to a banking partner who mentioned LSQ and were able to create a funding solution quickly.”
According to Klecha, he anticipates more than 100% revenue growth in the next 12 months, which, while exciting for the companies’ prospects, presents challenges.
“With our expansion plans, we are going to see a growth in payroll and operational expenses, and big companies have slower payment terms that can put the squeeze on working capital,” Klecha said. “There is no way for us to do this without a tool like this (an LSQ invoice finance facility) in our toolbox.”
Both Powerhouse Resources and Outage Solutions were funded within 30 days of Klecha’s initial engagement with LSQ.
“Joe and team have been amazing to work with,” Kyle Rich, senior business development officer at LSQ, said. “They were organized and accessible to make the underwriting process a breeze, which, in the end, allowed us to get the facility in place quickly. Kudos to them and kudos to our underwriting team for getting this done in time to serve the working capital needs.”
“I am very pleased that our banking partners recognized LSQ’s ability to help their client when they were not able to provide a working capital solution,” Chris Collins, LSQ senior regional vice president at LSQ, said. “Kyle and the LSQ team responded quickly to provide a solution so that the banker was able to maintain their treasury relationship. These situations are exactly why we feel LSQ is a premier partner to the banking community.”
For Klecha, the experience with LSQ has gone a long way to cement the relationship.
“Kyle, (director of underwriting) Tom Fevola and our account representative Emily (Lebron), have been tremendous to work with,” Klecha said. “We have people in our company already seeing the value enough to where they’re out there meeting people and recommending LSQ. Our experience has been nothing but a blessing to this point.”
