LSQ, a provider of working capital solutions, originated a $5 million facility for a staffing agency in Alabama.
The facility helped address several business needs. The agency was able to leverage its current accounts receivable to complete a management buyout, generating sufficient capital to complete the transaction without incurring additional term debt. The agency was also able to install a working capital facility that will help scale the business without covenants.
“This transaction is the epitome of how versatile factoring can be.” Matt DeBernardo, regional vice president for LSQ, said. “Our client not only generated cash from existing accounts receivable for the management buyout, but they also installed a working capital facility for the reopening, resulting in sales growth. And since LSQ’s product is off-balance sheet, they accomplished both without any balance sheet deterioration.”