nFusion Capital, a provider of financing solutions to small and middle-market businesses, provided a $3 million factoring facility with an accordion feature expandable up to $5 million to a nationwide staffing and recruiting firm headquartered in California. The financing will support payroll and operating needs as the company continues to scale its business.
Despite demonstrating consistent revenue growth, the company’s incumbent factoring relationship was terminated due to outstanding payroll tax liabilities. To address the issue, the company engaged a professional tax resolution firm to manage the tax liability through a payment plan with the IRS but was under pressure to secure a new lending partner. Its previous factor referred the company to nFusion Capital.
The nFusion team responded by structuring a $3 million factoring facility with an accordion feature up to $5 million.
“We are pleased to help this business with a financing solution aligned to its growth objectives,” Brice Reid, senior vice president, business development at nFusion Capital, said. “Given the labor-intensive nature of its contracts, this facility enabled the company to maintain uninterrupted operations, meet payroll obligations and avoid workforce reductions. Thanks to everyone’s hard work, we were able to close within ten business days.”
With the new facility in place, the company has the working capital necessary to support payroll and related tax obligations and is positioned to execute its strategic growth plans. The scalable accordion feature will give the staffing agency liquidity and flexibility to support increased contract volume and operational efficiency over time.
