Flexible $2M Powers Facilities Management Company Through Winter
Funding Received:
$2 Million
The Challenge
A Massachusetts-based facilities management company was successfully implementing its growth strategy while facing the headwinds of a seasonal business. The 60-employee company brokers services for commercial clients nationwide by engaging over 200 third-party contractors to perform landscaping, snow and ice removal, and parking lot maintenance.
Now accounts receivable in the busy months were double those of the summer off-season. With fall months approaching, they had cooled to inflexible terms offered on their line of credit by a traditional lender. The fluctuation in accounts receivable required flexible terms to carry the load through winter.
Our Solution
A referral partner introduced our team to the client who was busy preparing for the winter season. To be ready in time, the client required funding within a month. We worked with their lender to close out the previous LOC, structured a more cost-effective invoice financing option, and funded the advance on a $2 million facility (with an accordion to $5 million)—all in time for the deadline.
Organic growth from existing and new customers combined with growth from strategic expansion opportunities helped the company enter their busy snow and ice removal season with annual YTD sales projected to exceed the previous year.
Measured Results
90% Advance Rate
90% advance rate on accounts receivable financing
Paid Contractors
Funds used to pay contractors during busy season
Continued Growth
Funds used to support continued business growth during off season
Partner with Alterna
If your business needs faster, more flexible access to working capital, Alterna is ready to be the partner behind your next move.
