SVBusiness Capital announced the issuance of a $1.3MM revolving line of credit as well as a $205 million term loan to a California-based building maintenance company. The proceeds were used to refinance existing debt and to support their growing base of revenues.

The 15-year-old building maintenance company had experienced an operating loss relating to its new construction division. As a result, the company initiated a strategic turnaround plan that featured a renewed focus and emphasis on their maintenance and janitorial service sectors. A redeployment of personnel and assets aimed at these core competencies created sales momentum requiring larger credit facilities to support these changes, hence they turned to SVBusiness Capital for financial assistance.

Kevin O’Hare, SVP and group manager of SVBusiness Capital said, “The prospective borrower was in search of a lender that could become comfortable with both the conforming and the non-conforming pre-billed portion of their AR base as well as possessing a willingness to provide them with a term loan against their maintenance-oriented equipment, despite a prior year loss. By devising a pro-forma financing model that made much of the pre-billed AR eligible, in addition to gaining comfort with their turnaround efforts and subsequent repayment ability, we were able to meet their funding requirements for both the AR and term loans.”