nFusion provided a $2 million factoring facility to help a construction company pay subcontractors faster in order to acquire additional subcontractors’ services, which enabled the company to take on bigger projects and continue to grow.
The Delaware company, focused on providing technology-driven solutions for the construction industry, experienced rapid growth and doubled its year-over-year revenue. The company needed a capital structure that could support operations and growth as it began to hire additional subcontractors, but its payment terms to subcontractors and other vendors were stretched to 90 days and subcontractors were reluctant to work with the company. The company was unsuccessful in reaching out to traditional banks for working capital due to the complexity of construction funding. A bank contact knew of nFusion Capital’s expertise in the construction industry and referred the company.
