Recent Transactions

View our most recent transactions to see how we've helped others like you.

IT Staffing Company

Situation:

Formed in 2007, this IT Staffing and Recruiting company was formed by two industry veterans with significant relationships in the technology field. The company grew over the years and developed a strong relationship with a local community bank.  Despite multiple years of profitability, the company unfortunately encountered hard times and reported a net loss.  Soon afterwards, their bank was acquired and the new bank’s credit parameters required that the company be moved out of the portfolio.  In order to work with the company and provide an alternative solution, the banker referred the owners to Magnolia Financial.

 

Solution:

After meeting with the company and having in-depth discussions with the bank, Magnolia understood the challenges and proposed a $400,000 Accounts Receivable Line of Credit.  By increasing the company’s advance rate to 90%, Magnolia was able to provide enough working capital to not only pay off the bank but also give the company enough funds to meet their weekly payroll and other financial obligations. This “win-win” situation allowed the bank to reduce its exposure while keeping the deposit relationship and the company now has the necessary cash flow to grow the business.