Super G Capital provided a $1.25 million seasonal working capital loan to an education software provider.

Super G Capital‘s client provides core educational programs, primarily math and science, for middle and high school students using a SaaS platform.

The company is a seasonal business from a selling and cash collection perspective as the customers (school districts) have specific buying patterns, and the company collects lump-sum annual payments.

The company’s senior lender, Bridge Bank, provided an asset-based facility and thus there is a limited availability during the low season (i.e. limited AR to leverage) for a working capital cushion. The company historically solved seasonal working capital shortfalls with venture capital/convertible notes and was seeking non-dilutive capital as an alternative.

Super G was able to get comfortable with the company’s SaaS model, seasonality, growth plans and management team to close a $1.25 million loan that solved the company’s seasonal working capital needs. Super G’s amortization schedule was structured around the company’s seasonal cash flow – light amortization in low cash collection periods and increased amortization during the busy season.

Super G worked closely with Bridge Bank to finalize an intercreditor agreement and fund the company within three weeks.