nFusion Capital recently provided a $6 million asset-based lending facility to an electrical contracting company providing services for commercial, residential, industrial and custom electrical projects.
The company needed additional working capital to keep pace with expanding project demand. Its existing lender, however, made a strategic decision to reduce exposure to the construction industry and required the company to resolve its $4 million line of credit within a short timeframe. As the company searched for a new lender, a local bank that was pursuing the company’s depository business but unable to meet lending needs recommended nFusion senior vice president Curtis Powell, who is a construction financing expert.
In addition to funding the facility secured by receivables and inventory to meet the liquidity needs of the company, nFusion was also able to meet the previous lender’s deadline to satisfy the existing $4 million debt. With immediate financing secured, the company is now positioned to pursue its long-term goal of transitioning to a traditional line of credit.
“Though this deal did not unfold exactly as anticipated, we worked with all stakeholders to create a win for everyone,” Powell said. “The community bank won the company’s depository relationship, the company received the additional funding they needed to grow, the previous lender was satisfied, and we earned a new lending relationship.”
