nFusion Capital provided a $4 million factoring facility to a Northeastern United States-based company providing structural steel/precast concrete erection, reinforcing bars, rigging, crane services and equipment rentals used in the construction industry. The flexible financing was designed to enable the company to pay down some of its outstanding debt, take on new projects and get on a path to stable financial footing.
The company had been involved in a high volume of bonded projects, making securing financing challenging. Also, the company had grown rapidly and transitioned to a larger accounting firm and office management team.
During the transition, the new accounting firm identified that payroll taxes had historically not been withheld appropriately, and the issue went undetected for some time. As a result, the company faced a $10 million tax lien and significant outstanding MCA loan defaults due to cash constraints caused by the tax issue.
Unable to access traditional financing, a Certified Public Accountant referral source referred them to nFusion Capital for their construction industry expertise and ability to complete complex deals. Senior executive vice president Brice Reid and his team dug in to resolve tax issues and MCA debt exposure.
