nFusion Capital, a provider of financing solutions to small and middle-market businesses, provided a $2 million asset-based lending facility to a West Coast-based HVAC system contractor. The financing will support the company’s expanding project backlog and continued growth.
With growing industry projections and poised for record sales, the company sought new financing after its previous nonbank lender of 17 years made the strategic decision to reduce exposure to construction-related clients, specifically those with progress-billing contracts. Wanting to ensure their long-term client was well cared for, the lender introduced the HVAC company’s owners to nFusion Capital, recognizing the firm’s specialized knowledge of the construction industry.
“We are honored that this lender trusted us to provide a soft landing for their client and to become this Company’s new long-term partner,” Alexandra Scoggin, senior executive vice president at nFusion Capital, said. “The lender’s decision to exit the construction sector reflected internal strategy changes, not the company’s performance.”
nFusion met with the Company right away and tailored a flexible $2 million asset-based lending facility based on accounts receivable to provide maximum availability against progress billings. The facility enables the company to execute its large project pipeline with confidence and scalability as backlogged projects move towards completion.
“The owner was wonderful to work with, and I’m excited to help finance their growing pipeline and support their continued expansion,” Scoggin said. “It’s a privilege to partner with a company that has been successfully operating for almost 45 years.”
