nFusion Capital, a provider of financing solutions to small and middle-market businesses, provided a $4 million accounts receivable factoring facility to a Tampa-based product development and brand incubation company. The financing will support the launch of a new direct-to-consumer and wholesale business focused on premium chicken coop products.
The startup needed working capital to support its launch and was referred to nFusion Capital by another factor. The transaction includes a concentration exposure to a single third-party distributor; however, the end debtor demonstrated strong credit quality. nFusion structured the facility to provide liquidity while mitigating risk through disciplined underwriting of the receivables base.
“Early-stage companies often face a gap between initial capital needs and access to traditional bank financing,” Alexandra Scoggin, senior executive vice president of nFusion Capital, said. “In this case, the strength of the underlying receivables and management’s operating experience supported a structure that provides near-term liquidity while accommodating expected growth. I’m looking forward to seeing them scale and helping them fly the nFusion coop when the time is right.”
The facility supported the company’s launch and laid the groundwork for expansion into new products and additional distribution points.
