Building a Strong Foundation to Grow On

Building a Strong Foundation to Grow On

Client:

New Jersey-based Advanced Facility Solutions, LLC (AFS) provides facilities maintenance, short-run small construction projects, and on-demand repair services for commercial businesses. They subcontract work to over 12,000 vendors throughout the country, giving businesses streamlined access for all their locations.

Situation:

With a rapid growth spurt and depleted cash resources, the company’s Accounts Payable (AP) swelled, with a substantial number in excess of 90 days. Their Days Sales Outstanding (DSO) were in excess of 60 days, leaving them in a cash flow crunch with vendors who required payments within 30 days. AFS had an MCA line but wanted to convert to a traditional factoring line of credit. Most factoring companies were uncomfortable with the industry risk and potentially lienable A/P and couldn’t accommodate them.

Solution:

A $4 million factoring line of credit.

“As a fast-growing facility management firm, we recognized that we needed a partner that would be able to help fund our growth. When we started researching factoring companies, we acknowledged that our industry was a little unique and was not in the wheelhouse of most. From the start, conversations with the nFusion staff came with understanding and timely solutions to all our needs. They worked with our team and devised our funding plan. After auditing our financials, nFusion arranged a strategy that would work best for our company. Working with nFusion has been a wonderful experience and our partnership will allow Advanced Facility Solutions to focus on building relationships with existing clients and new future growth.”

James Burbano, Principal, Advanced Facility Solutions

Result:

The funding enabled them to immediately pay off their $500,000 MCA loan and a $500,000 bank loan, as well as pay off all their over 90 A/P. Going forward, the facility gives them a healthy line of credit to grow with, pay vendors immediately and potentially utilize early pay discounts to offset factoring costs.

“Advanced Facilities’ turnaround firm reached out to me to see if we could help them in this crucial transition,” said nFusion Vice President Cherie Milazzo. “I was pleased to be able to help them pay off their burdensome MCA line and get them the cash flow they needed to move forward and thrive.”

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