Gulf Coast Business Credit closed 43 A/R, factoring and ABL deals in Q3/19.
The deals included a $4 million working capital facility to a Louisiana based staffing company, a $300,000 working capital facility to a Texas based manufacturing company and a $200,000 working capital facility to a California based transportation company.
The Louisiana based staffing company factored with GCBC for many years and then graduated out of factoring to a traditional bank line of credit at a local financial institution as their revenues became more consistent year over year. The company recently closed several new contracts in a very short period of time. This spike in new business made cash flow management somewhat challenging as its rapid sales growth outpaced cash flow. The company’s bank was not willing to ride this “roller coaster” with the company and declined the company’s request to increase its loan. So, the company reached back out to GCBC for factoring. Through specialized monitoring of credit and collateral, factoring offered the company more availability. GCBC was happy to renew the relationship and was able to provide a $4,000,000 working capital facility. With GCBC’s funding secured, the staffing company’s amazing growth run continued.
The Texas-based manufacturing company was referred to Gulf Coast by an independent broker. The company was looking to move to a factor with industry expertise as the company’s current factor was limiting their overall availability due to lack of payment history from customers. GCBC had credit history with the company’s customers and approved debtor limits to match the upcoming needs of the company. On top of additional availability, GCBC lowered pricing. The move to GCBC allowed this company to take advantage of top line and bottom line growth.
The California based transportation company was founded by two individuals with almost a decade of industry experience whom finally decided to start their own company. GCBC funded the company’s first invoices. Since the initial funding, the company has increased monthly sales an average of 75% year-to-date.
