nFusion Capital Provides $2.5 Million Factoring Line of Credit to Educational Staffing Company
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 our 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.
“Melanie was so helpful, the time to understand our needs while also being incredibly reliable in times of funding. In addition, Amity and Anthony were instrumental in helping us get here by taking on such a complex business and figuring out how to make it work.” -Founder & CEO
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.
“nFusion Capital has been very dependable and helpful in supporting our growth, and everyone we have worked with has been incredibly kind and easy to work with. We also felt that everyone came from a perspective of wanting to help our company, so that gave us a lot of trust in them.”-Founder & CEO
Results:
Our client can now access their line of credit through same-day or next-day wires, and are not constrained by the bureaucratic issues or lack of funding they previously faced. This has allowed their team to focus on growth, plan expenditures, manage their cash flow and continue their entrepreneurial journey.