Manufacturing company jumpstarts growth with a $2M factoring line

AR Funding is proud to welcome this manufacturing company for the energy industry as one of its newest clients.

AT A GLANCE

Industry: Equipment manufacturing
Location: MS
Company size: ~$4M
Reason for applying: Fund business recovery
Cash available through factoring: $2M

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PROBLEM: Jumpstart growth after a challenging few years

This welding and fabrication specialist for the energy and gas industries specializes in tank construction and refurbishment. Founded in the mid 1990s, the company saw consistent success until a few years ago, when the combined effects of the pandemic and stricter energy and environmental regulations impacted growth for the industries they serviced. 

Within a short period, the company saw the workforce contract by 70% and revenues drop by 80%. Bank loans helped the company weather the downturn, but when business began to look up, they needed additional cash to finance material and operating costs for two big contracts. 

SOLUTION: $2 million factoring credit line

The bank was unwilling to lend the company more money, but the company’s broker suggested factoring as a complementary financing option and recommended AR Funding. The owner met with one of our representatives and was able to secure a $2 million factoring line. Now the company has the funds needed to jumpstart growth and start rebuilding a path to success.  

This happy client received financing with help from Brian Gullage, Regional VP, Southeast Region. Find out how much cash your company can access through invoice factoring. Talk to us.