Wintrust Receivables Finance closed a new $20 million accounts receivable line of credit for a temporary staffing firm based in the Great Lakes region of the U.S. The company is a preferred staffing agency for employers within the aerospace, automotive, energy, oil and gas, power, and telecommunications industries.
Recently, the company has experienced a slowdown in revenue growth, as many of the sectors it serves have begun to scale back their operations given the current economic landscape. This has resulted in margin compression and overall deterioration of the company’s bottom line. This made obtaining traditional bank financing difficult given its recent trends in financial performance, combined with customer concentrations within the accounts receivable collateral. With the $20 million facility now in place, the company has the liquidity and availability to navigate through current market conditions.
“It is easy for a bank to be there for a company when times are good, but our ability to help companies such as this one ride the wave of economic cycles is what we believe is a true differentiator from our competitors in the market,” John Marrinson, executive vice president and group head of Wintrust Receivables Finance, said. “We believe that the value we bring to the market is WRF’s ability to step in and provide a solution — within a bank environment — where others couldn’t. We believe that with this facility now in place, the company has the financial support and access to liquidity it needs to ride the wave of the current economic environment.”
