Daily News: October 20, 2016

FSW Funding Provides $3MM Credit Line for FAA Repair Station

FSW Funding closed a $3 million credit line for a California-based FAA repair station. The company had $3 million of unencumbered equipment, $2 million in accounts receivable and $11 million in backlog business.

While the company was showing a profit for the past six months, the recorded losses for the previous two years made traditional bank borrowing out of the question. The company was one month from closing its doors because it couldn’t monetize the $11 million backlog.

The credit line enabled the company to leverage the domestic and international accounts receivable to fund inventory to start converting the backlog. The company has been a client for eight months and has been able to sustain profitability and will move to a traditional lender in 2017.