Security services company goes from negative to positive revenue with a $750K factoring line

AR Funding is proud to welcome this IT and security services company as one of its newest clients.

AT A GLANCE

Industry: Security
Location: MD
Reason for applying: Deliver on a big contract
Cash available through factoring: $750K

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PROBLEM: A welcome turnaround creates cash-flow stress

Founded nearly 15 years ago, this IT and cybersecurity services company recently went through a couple of difficult years and ended up operating at a loss. 

The downturn was temporary, and the owner recently landed a significant client whose business would transform the company’s prospects. It was an opportunity to turn things around and open doors to other lucrative engagements in the sector. However, the client required a lengthy payment cycle from its vendors, which would strain the company’s cash flow and jeopardize payroll. 

The company needed working capital, but because of its lack of assets or a strong history of revenue generation, the owner was unable to secure a bank loan.

SOLUTION: $750K factoring credit line

Learning of the owner’s cash flow challenges, a business colleague and client of AR Funding recommended that he talk to us. We saw that the company losses were manageable and that it would see a solid revenue stream from the new contract. Based on this stable financial position, we were able to extend a $750,000 factoring line that will enable the owner to ramp up service quickly and meet payroll confidently. The company is now on track to generate approximately $1.8 million this year.

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