BIRMINGHAM, Ala., Oct. 27, 2021 /PRNewswire/ -- After the pandemic left a $40 Million Service Company with a cash flow issue due to later paying customers, New York-based investment banker, Attract Capital, LLC was engaged to find a solution.
With a conventional loan facility not in the cards for the company, Attract Capital's founder, David Barnitt, advised the company to secure a receivables financing facility that would infuse a significant cash position on the balance sheet on day one. To fulfill such needs, Attract introduced Alabama-based A/R Finance and Asset Based Lender, Porter Capital.
Barnitt said, "We ran our process and identified Porter Capital as a good fit. Porter was quick to respond and ran a straightforward process. I was impressed with their personal commitment level to the deal. The Porter deal team was highly professional and transparent with the client, creating a sense of closing certainty and ongoing funding reliability."
Porter extended an $8MM credit line secured by Accounts Receivable. The credit facility allows the company to draw up to 90% of the invoice balance immediately while also providing eligibility on the invoices for up to 120 days. Since the company had never financed its invoices before nor entered into an alternative finance agreement, education on the process was needed.
John Cox Miller, Senior Vice President of Porter Capital, said, "Attract Capital was instrumental in managing the client's expectations, bringing them up to speed on how the financing works and keeping everyone on task to fund the credit facility. David and his team seemed to know exactly what we needed and managed an efficient process with the client. David also reviewed the credit agreements with the client and educated them on the importance of certain provisions necessary for an A/R lender. We are thrilled to gain a great client and fund one for our trusted partners at Attract Capital."
Barnitt added, "I am very excited to help my client obtain flexible, well-priced funding. I am also happy to have helped Porter, a leading lender, close this deal and gain a new, scalable lending relationship."
The service company now has the ability to increase cash flow and fund growth without restrictive financial covenants.
About Porter Capital:
Porter Capital Corporation was founded in 1991 by brothers Marc and Donald Porter in Birmingham, AL. Porter offers working-capital solutions to businesses all over the country in a variety of industries. As a direct lender and factoring company, Porter Capital has provided over $8 billion in funding since inception. Porter Capital offers Invoice Factoring and Asset Based Credit Lines up to $15MM. Since founding the company, Porter Capital has expanded to include a special transportation division known as Porter Freight Funding. The Porter businesses continue to grow by providing working-capital solutions, emphasizing personalized, dedicated customer service without sacrificing speed and efficiency.
To know more about Porter Capital Corporation and how it can be a working capital solution provider for businesses, call 1-800-737-7344 or visit its official website.
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SOURCE Porter Capital