Accounts Receivable Line of Credit
This commercial pressure washing and sweeping company created a unique process to clean faster and deeper than traditional methods. Their proprietary fleet of cleaning machines are eco-friendly as they recycle 90% of the wastewater used in washing. The company's revenue spiked as they brought on new equipment and expanded the fleet. The growth created new challenges as the company needed additional working capital to cover the increased payroll and other expenses. Unfortunately, the company was unable to secure a line of credit from their local bank due to a lack of profitability. Instead of simply saying "no", the banker referred the company to Magnolia Financial as an alternative funding solution.
Despite a prior year loss, Magnolia focused on the company's Accounts Receivable and their strong customer base. Using only Accounts Receivable as collateral, Magnolia Financial extended the company a $250,000 working capital line of credit. Instead of waiting 60 days or more to be paid by their customers, the company now has access to those funds the day they invoice. The improved cash flow allows the company to focus on their growth plans rather than worrying about meeting their short-term obligations. The company is now on a path to profitability and expects to be "bankable" in 12 months thanks to the Accounts Receivable Line of Credit provided by Magnolia Financial.
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Kerry Coker, KAMADO JOE
"The Magnolia guys have a real ‘can do’ attitude. Marc Smith and his team are super responsive and upbeat. They can fund within a matter of days. They are always looking for positive opportunities for their clients. It's a breath of fresh air to work with someone like that."
Frank Workman, Dealers Supply & Lumber Company
""Magnolia was really available when we needed them, and the leadership at Magnolia was empathetic to the cold, harsh nature of traditional banking. It gave us a tremendous amount of comfort during a difficult time. Marc Smith and his team really understood where we were, where we were going and gave us the help we needed to get there.""
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