The company provides specialized engineering, technical support, and project management consultants for the Oil & Gas industry. Services include installation and maintenance of steam turbines, compressors, generators, and more. In this technically complex industry, ongoing access to capital is critical to hire, grow and train their highly skilled teams.
Financing Solution: Factoring
Initial Amount: $1,000,000
Location: Southwest
Industry: Engineering and Project Management for Oil & Gas Industry
With a parent company based outside the United States, this rapidly growing five-year-old company was having trouble accessing working capital to fund its growth. The lack of working capital was hampering their ability to hire qualified engineers, which then limited their ability to onboard new clients and take on new contracts.
Commercial Funding met with the U.S.-based management team to learn about the business model, customer base, and the intercompany relationship with the foreign parent company.
This meeting resulted in CFI having a full understanding of the operation, services provided, and a comfort level with the U.S. management. And because CFI is intimately familiar with the oil and gas industry, we already had significant experience with some of the company’s account debtors allowing us to provide the facility they needed to grow their business.
It was only two weeks between the time a letter-of-intent (LOI) was issued to first funding.
The invoice factoring line and relationship with CFI has: