Environmental Consulting Firm

Situation

This regional consulting firm provides a full range of environmental engineering services to industrial and municipal clients.  With a solid reputation in the industry for providing high-quality service, the company enjoyed significant historical profits.  In late 2010, the owner purchased the remaining company stock from his partner making him the sole owner.  By using significant personal funds and leveraging equity in the business for the buyout, the company became cash strapped and needed working capital to fund payroll for new projects.  Their Commercial Lender was unable to increase the company’s line of credit and referred the owner to Magnolia Financial.

Solution

With extensive experience working with companies in the Construction Industry, Magnolia Financial reviewed the projections and extended the company a $150,000 Accounts Receivable Line of Credit.  The additional working capital provided by the Magnolia Cash Flow Program allows the company to hire additional staff to execute on the new projects.  The bank was able to keep the deposit relationship and will look to take the credit facility back from Magnolia in 12 to 18 months.  

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