Working Capital Fuels Lone Star Pipe Services Launch and Project Pipeline

Client: Texas-based Lone Star Pipe Services, LLC, is a family-owned and operated business specializing in industrial coatings. They offer a wide range of services, including a range of coatings, pipe restoration, repairs and storage. A start-up company, the principal had worked for a pipe coating company that was a previous nFusion Capital client.

Situation: As a brand-new company, Lone Star needed working capital to purchase equipment and inventory, recruit skilled workers, meet payroll obligations, invest in advertising and more. Since the principal had worked with nFusion at his previous employer and appreciated the relationship that had been built, he wasted no time in reaching out to nFusion when he was ready to start his own business.

Solution: $2 million factoring line

“When we started the new company, we had a lack of cash flow. nFusion has been our solution to accelerate cash flow and give our customers the terms they require – 30-60-90 days – no problem. nFusion gives us the freedom to say yes to new work and invoice the customer, and then nFusion supports us with 90% of the invoice and we can keep going. We are able to cover all our costs immediately, plus receive some of the profit to reinvest in growing our business. That enables us to take care of employees and inventory, as well as keep our cash flow very strong.” – Jose Perez, President, Lone Star Pipe Services, LLC

Result: The funding helped Lone Star launch and begin filling their project pipeline, giving the company a clear runway to swift growth. The principal anticipates rapid growth, billings in excess of $500,000 per week, and an exciting future.

“Jose and I had worked together for three years when he was with his previous employer. We built a good working relationship with transparency, excellent communication, and respect which led to their success and graduating from nFusion funding to a bank line. He seeks the same things in his new company and called me directly as he was comfortable with our approach and knows how everything works. We are honored and excited to help his new company grow.” – Melanie Guzman, nFusion Capital Senior Account Executive