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Specialty Staffing Company

 

SITUATION 

In business for 20 years, this specialty staffing company provides skilled labor to the oil industry throughout the Southeast. With a niche in the oil industry, the company enjoyed a strong brand that allowed them to expand over the years to multiple of locations.  However, when the price of oil began to sharply decline, the company's revenues quickly followed. They were unable to downsize fast enough, resulting in losses that eroded the company's equity. Due to the prior year loss and deficit net worth, their local bank declined to renew their working capital line of credit.

 

SOLUTION 

Rather than turn the company away, the bank referred them to Magnolia Financial as an alternative financing solution. With extensive experience financing staffing companies, Magnolia understood the recent challenges and extended the company a $500,000 Accounts Receivable Line of Credit. Without the uncertainty that was surrounding their credit facility, the company can now focus on executing its turnaround plan rather than having to worry about how to cover upcoming payrolls.