Our client is the largest and most trusted commercial flooring company in Arizona, based in Phoenix and founded in 1984. A successful and growing business, they have earned a reputation for high-quality work and always doing the right thing for their customers. They partner with contractors, architects, designers, and facility managers to deliver custom solutions along with expert strategic planning, objective consultation, and experienced installation services.
Like many companies in the construction and building materials industries, our client had suffered losses related to job delays and supply chain challenges during the pandemic. Once the industry and overall economy began to recover, the company had a huge backlog of projects initiating at the same time, which strained its cash reserves. Their existing lender did not have the flexibility to work with them through those challenging times and sought to exit the relationship.
The size and complexity of their jobs were increasing, resulting in a parallel need to carry a greater level of inventory and offer extended payment terms for larger volumes of work. The majority of their capital was tied up in inventory and receivables, resulting in a liquidity crunch. Without additional funding, they would have to pass up new project opportunities. Like many contractors, they bill on a progress basis which made it a challenge to secure financing from a traditional lender.
After a long and difficult search for a new, flexible lending partner, the owners were ready to abandon plans to raise capital. The proposals they had received were significantly more expensive and provided less than half of the working capital availability they needed; most would not lend against progress billing receivables. Their long-term financial advisor, Dan Glick, contacted nFusion Capital.
“I had spoken with several lenders and received and rejected proposals as they simply did not provide adequate availability to support my client’s operating requirements. Utilizing the same information with nFusion Capital as I shared with other lenders, within days, a term sheet was generated that provided a structure matching my client’s availability needs.” – Dan Glick, Glick Financial Solutions
Within three weeks after the term sheet was signed, nFusion Capital provided a $5 million asset-based lending facility, structured to provide double the availability of other funding proposals the company had received. The owners selected nFusion Capital because we specialize in construction financing, understood their specific growth challenges, and had no problems lending against progress billings in addition to providing an inventory loan.
Our team members, Jesse Baer, Rachel Samuelson, and Anthony Fortunato worked on structuring a custom solution that would overcome the company’s challenges, enabling them to turn a profit and continue their entrepreneurial journey. At each and every customer touch point, we worked to deliver a superior experience to the client and their financial sponsor, Ridgeview Capital.
“What set nFusion apart for us was that the team didn’t force us to comply with a premade, standard, and arbitrary “play-book.” Instead, the nFusion team sought to understand our specific situation, our billing cycle, and our goals, and crafted a specific proposal and process that sets us up for continued growth and success.” – Tim Forsgren, Ridgeview Capital
nFusion Capital’s asset-based lending solution enabled the company to purchase more inventory, take on more and bigger projects, and continue its rapid growth trajectory without succumbing to cash shortfalls.