SG Credit Partners provided a $1.5 million second lien loan for a managed services provided.
The company demonstrated significant year-over-year growth and had recently signed several large, multi-year contracts with new customers. It needed upfront working capital to invest in additional people costs in order to effectively perform on upcoming contracts. Additionally, due to the timing of annual payments, monthly cashflow could be lumpy.
SG Credit took into account the client’s large recurring revenue base, strong pipeline of signed contracts and substantial enterprise value. SG Credit provided a second lien $1.5 million loan behind the company’s existing factoring relationship, which provided the Company with enough working capital to smooth out monthly cashflow and successfully perform on the recently signed contracts.