Sallyport completed a $1.75 million in accounts receivable finance for an oil and gas company in the U.S.
The client was referred to Sallyport through an existing client in the energy services space. Sallyport secured the business through its clients’ strong connection with the prospect and its ongoing relationship with Sallyport EVP Emma Hart.
The pandemic resulted in some cash flow challenges for this business as it saw income dropping and profitability taking a downward turn. The company also wants to be able to acquire several new contracts, which it was unable to until liquidity improved. The injection of working capital will allow it to commit to these new contracts and subsidize the losses incurred during COVID-19 until it regains profitability.
In the longer term, the client hopes to adjust their structure to allow one of the owners to take greater control of the company and grow their revenue to $25 million a year.
“It is always great to have a client recommend us to their industry peers based on a resoundingly positive experience,” James Bartel, senior vice president for Sallyport, said. “We’ve helped many businesses in the oil and gas sector this year and I am sure this one will be no different – they are well equipped now and will show a vast improvement in their business in the coming months and we look forward to seeing it!”
