Wintrust Receivables Finance closed a $20 million credit facility for a Detroit-based provider of staffing for engineering and other technical professionals.
The company is a staffing agency for employers within the aerospace, automotive, oil and gas, power and telecommunications industries. Some of its current clients require that the company provide its services under extended payment terms. These extended payment terms lead to some large accounts receivable concentrations and the firm needed a larger line of credit than similarly sized companies.
During the early days of the COVID-19 shutdowns, the firm experienced a short-term decrease in revenue. During this time period, the company’s management did not feel it was given the support needed by its incumbent lender and determined it needed to find a new financial partner.
Wintrust Receivables Finance structured a new line of credit for the company that included no financial covenants, extended availability on accounts receivable generated under extended payment terms and no customer concentration limits. Wintrust Receivables Finance also increased the size of the line of credit to support additional growth. In addition to providing the line of credit, Wintrust Receivables Finance is also providing a corporate credit card program and treasury management services.
“We are excited to partner with this excellent management team and help support their current working capital financing needs and future growth opportunities,” Jason LeuVoy, senior vice president of Wintrust Receivables Finance, said. “This new line of credit demonstrated the flexibly and creativity the WRF team takes when considering the financing need of any prospective client, and the result is a winning partnership for both the client and Wintrust.”
