Prestige Capital led a syndicate of finance companies in increasing a West Coast staffing company’s credit line from $24 million to $100 million. The syndicate included Rosenthal & Rosenthal, Lenders Funding, Sterling Commercial Credit and Great Elm Capital.
In 2018, Prestige Capital provided a $3 million factoring facility to the company. More than a year later, the client graduated from the Prestige Capital program and secured financing from a traditional bank, but after two years, the same company came back to Prestige Capital because its bank couldn’t keep up with its growth. Prestige Capital subsequently set the company up with a $24 million credit line.
Approximately 90 days after closing the $24 million credit line, the client gained an opportunity to more than triple its current volume by taking on the responsibility for staffing up to 1,700 additional health care providers to administer COVID-19 vaccines and work in hospitals. To take on such a formidable task, the company asked Prestige Capital to raise its line from $24 million to $100 million. Since this level of funding was much greater than Prestige Capital could provide on its own, Prestige leveraged its relationships with other finance companies to provide funding.
“When we say relationships matter, we mean it,” Stuart Rosenthal, president of Prestige Capital, said. “Our network of partners and the relationships we have with our current and former clients allow us to find solutions fast and serve as an industry leader when there are invoices that need funding. It also allows us to explore creative ways to support our clients and collaborate with our partners.”
“Historically, Rosenthal & Rosenthal has not participated in a syndicated credit deal where we were not the lead lender. However, because of our prior experience working with Prestige Capital and our confidence in their ability to lead this credit, we were grateful for the opportunity and pleased to participate,” Paul Schuldiner, executive vice president and chief lending officer at Rosenthal & Rosenthal, said. “This deal reflects our excellent track record of partnering with other lenders and demonstrates our capabilities and our expertise providing capital to a wide range of industries, the staffing sector among them.”