A rapidly-expanding professional services firm in North Carolina faced a critical juncture in its growth trajectory. Needing additional capital to sustain its expansion, the firm turned to Samlend Financial for a timely and flexible financing solution.
Vision
The firm's vision was to continue its impressive growth by expanding its service offerings and client base. Moving to a new, larger ABL facility was the long-term objective and, in the short-term, they needed bridge capital. Without the short-term financing, there was no clear path to the long-term ABL facility. Moreover, giving up equity in exchange for the short-term bridge would cap their growth potential.
Opportunity
The professional services sector presented substantial opportunities for the firm. The industry was experiencing increased demand for specialized services, driven by technological advancements and a shifting business landscape. This growth trend was particularly pronounced in North Carolina, where businesses were seeking more comprehensive and innovative solutions. The firm recognized that to capitalize on this burgeoning market, it needed to enhance its operational capacity and service delivery.
Challenge
The company faced two main challenges:
Minimal Assets: As a service-based business with minimal tangible assets, securing traditional financing options was difficult.
Transition to a New Lender: The firm was in the process of moving to a new senior lender after outgrowing its existing Asset-Based Lending (ABL) facility's factoring line. The current lender was unable or unwilling to provide an over-advance to bridge the transition, leaving the company at risk of cash flow shortfalls.
How Samlend Financial Helped
Samlend Financial quickly stepped in to address these challenges. Within six hours of receiving the company's financials, Samlend Financial approved $2.7 million in bridge capital, funding $2 million immediately. This quick response provided the necessary liquidity to maintain the company's growth trajectory. Additionally, Samlend Financial agreed to a subordinate position to both the current and new senior lenders, ensuring the company's transition was smooth and unimpeded.
Results
Sustained Growth: The firm successfully maintained its growth momentum without sacrificing equity.
Financial Stability: With the bridge capital, the company ensured stable cash flow during the transition to the new senior lender.
Seamless Transition: Samlend Financial's subordinated position facilitated a smooth transition between lenders, preventing any operational disruptions.
Conclusion
Samlend Financial's timely and flexible financing solution enabled the professional services firm to overcome its cash flow challenges and maintain its growth trajectory. By providing $2 million in bridge capital quickly and efficiently, Samlend Financial played a pivotal role in ensuring the company's seamless transition to a new senior lender and continued success in the competitive professional services industry. This case study highlights the importance of responsive financial partnerships in driving business growth and stability.
Why Samlend Financial
The company chose Samlend Financial for several reasons:
Speed: Samlend Financial's rapid approval process, providing an offer within six hours, was crucial in addressing the company's urgent funding needs.
Flexibility: The ability to offer customized bridge capital solutions tailored to the company's specific situation was a significant advantage.
Subordination: Samlend Financial's willingness to take a subordinated position to the current and new lenders demonstrated their commitment to supporting the company's long-term success.
