nFusion Capital Provides $2.5 Million Factoring Line of Credit to Educational Staffing Company
November 3, 2022
Source: nFusion Capital
Client:
Based in New York, this client provides educational staffing services to disabled and special needs children throughout the public school district. They are a fast-growing startup, providing individual services to over 300 students in more than 25 schools with special needs every year. They provide qualified teachers who are certified in either literacy or special education and bring robust resource room services into schools. Using the Common Core State Teaching Standards to determine instructional goals, their teachers have assisted students from kindergarten through twelfth grade in math, literacy and test-prep instruction.
Situation:
Since nFusion Capital's client's contract is with a state government agency, it can take 45 to 60 days for them to receive payments, creating a cash flow squeeze. Other financing providers were unable or unwilling to provide funding due to the company’s single debtor concentration, dealing with a public agency, and New York’s heightened legal, licensing and disclosure risks. In addition, the company had taken out MCA loans which needed to be satisfied and that were constricting their cash flow.
Challenge:
Steady cash flow is key to solving their biggest challenge: recruiting and retaining qualified staff to provide services and keep up with demand. Their existing line of credit was insufficient to meet their working capital needs, making it impossible for them to meet payroll and other related business expenses. They needed a larger, more sustainable option for working capital. A broker referred them to nFusion Capital.
Solution:
nFusion Capital provided a $2.5 million factoring line of credit, structured to support our client’s needs. Our team members, Anthony, Amity, and Melanie, worked together to structure a custom solution flexible enough to overcome the client’s challenges.
Based in New York, this client provides educational staffing services to disabled and special needs children throughout the public school district. They are a fast-growing startup, providing individual services to over 300 students in more than 25 schools with special needs every year. They provide qualified teachers who are certified in either literacy or special education and bring robust resource room services into schools. Using the Common Core State Teaching Standards to determine instructional goals, their teachers have assisted students from kindergarten through twelfth grade in math, literacy and test-prep instruction.
Situation:
Since nFusion Capital's client's contract is with a state government agency, it can take 45 to 60 days for them to receive payments, creating a cash flow squeeze. Other financing providers were unable or unwilling to provide funding due to the company’s single debtor concentration, dealing with a public agency, and New York’s heightened legal, licensing and disclosure risks. In addition, the company had taken out MCA loans which needed to be satisfied and that were constricting their cash flow.
Challenge:
Steady cash flow is key to solving their biggest challenge: recruiting and retaining qualified staff to provide services and keep up with demand. Their existing line of credit was insufficient to meet their working capital needs, making it impossible for them to meet payroll and other related business expenses. They needed a larger, more sustainable option for working capital. A broker referred them to nFusion Capital.
Solution:
nFusion Capital provided a $2.5 million factoring line of credit, structured to support our client’s needs. Our team members, Anthony, Amity, and Melanie, worked together to structure a custom solution flexible enough to overcome the client’s challenges.
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The principals stated they chose nFusion Capital because they found the terms to be fair, the closing process was streamlined and fast, and the team took ownership of the experience. |
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