nFusion Capital provided a $5 million asset-based lending facility to a commercial flooring company based in Arizona. The facility was structured to provide double the availability of other funding proposals.
The size and the complexity of the flooring company’s jobs were increasing, resulting in a parallel need to carry a greater level of inventory and offer extended payment terms for larger volumes of work. The majority of the company’s capital was tied up in inventory and receivables, resulting in a liquidity crunch. Without additional funding, it would have to pass up new project opportunities. Like many contractors, it bills on a progress basis, which made it a challenge to secure financing from a traditional lender.
nFusion Capital’s team members Jesse Baer, Rachel Samuelson and Anthony Fortunato worked on structuring a custom solution that would overcome the company’s challenges, enabling it to turn a profit and continue its entrepreneurial journey. The solution enabled the company to purchase more inventory, take on more and bigger projects and continue its growth trajectory without succumbing to cash shortfalls.
“I had spoken with several lenders and received and rejected proposals, as they simply did not provide adequate availability to support my client’s operating requirements. Utilizing the same information with nFusion Capital as I shared with other lenders, within days, a term sheet was generated that provided a structure matching my client’s availability needs,” Dan Glick, principal at Glick Financial Solutions, said.
“What set nFusion apart for us was the that the team didn’t force us to comply with a premade, standard and arbitrary “playbook”.” Instead, the nFusion team sought to understand our specific situation, our billing cycle and our goals, and crafted a specific proposal and process that sets us up for continued growth and success,” Tim Forsgren, vice president at Ridgeview Capital, said.
