Commercial Finance Partners (CFP), a Boca Raton-based direct factor and debt capital advisory firm, closed a $1.5 million accounts receivable financing facility for a fabric and textile wholesaler. The facility was funded directly from CFP’s balance sheet.
The transaction required CFP to negotiate a subordination of the client’s existing SBA 7(a) lender’s lien on receivables and to manage the buyout of the company’s incumbent factor, a relationship both parties were seeking to exit amicably. CFP coordinated the subordination, the transition and the payoff in a single closing, with no interruption to the client’s cash flow.
The facility provides advance rates above 90% and same-day funding on verified invoices, giving the company the working capital to support its growth with national retail and design customers.
“Deals with SBA debt in front of the receivables get declined reflexively across our industry, and they shouldn’t be,” John Buanno, president of CFP, said. “We negotiated the subordination directly with the lender, managed a transition that the client and the prior factor both felt good about, and funded the same week the documents were signed. That’s the advantage of making every decision in-house on our own balance sheet.”
