nFusion Capital provides US$4m factoring facility

nFusion Capital recently provided a US$4m factoring facility to a company in the Northeastern United States, that provides structural steel/precast concrete erection, reinforcing bars, rigging, crane services, and equipment rentals used in the construction industry. The company had been involved in a high volume of bonded projects, making securing financing challenging. Also, the company had grown rapidly and transitioned to a larger accounting firm and office management team.

During the transition, the new accounting firm identified that payroll taxes had historically not been withheld appropriately, and the issue went undetected for some time. As a result, the company faced a US$10m tax lien and significant outstanding MCA loan defaults due to cash constraints caused by the tax issue. Unable to access traditional financing, a Certified Public Accountant referral source referred them to nFusion Capital for their construction industry expertise and ability to complete complex deals.

Senior Executive Vice President Brice Reid and his team worked to resolve tax issues and MCA debt exposure. After a period of due diligence and negotiations, nFusion provided a US$4m factoring facility, enabling the Company to pay down some of its outstanding debt, take on new projects, and get on a path to stable financial footing.

“This was a real team effort for a multi-faceted deal with many moving parts,” Reid said. “We worked tirelessly to resolve outstanding issues, contractor liens and related accounts payable, and to perform accounts receivable verifications. Ultimately, giving this entrepreneurial, hands-on Company a second chance to regrow the business was very satisfying.”

Source: nFusion Capital