The Right Funding Solutions for Healthy Business Growth

Although it came as an honor, this sudden change brought a significant shift in their invoicing terms, moving from net-7 to net-60 overnight. This effectively tied up over $2MM in invoices for what would be 60+ days. Faced with an urgent cash flow shortage, the company's banker reached out to Serve Funding for a quick and effective solution. After considering various options, including invoice factoring, which wasn't viable due to the retailer's internal processes, Serve Funding sourced a short-term lender to come through quickly for this client. The lender underwrote the financing based on the company's cash flow and provided a $2MM bridge loan in a matter of days. This allowed the transportation company to smoothly navigate the 60-day gap without disrupting their operations.

The risk was they would fall short on meeting their payroll funding requirement, so the firm's leadership needed a swift solution to avoid disrupting their operations and staff morale. Their account executive, working with a new PEO partner, reached out to Serve Funding for immediate assistance. Understanding the urgency, we quickly sourced a $150,000 term loan with an 18-month repayment structure. The loan closed in just under four business days, allowing the firm to meet payroll on time and avoid any operational setbacks. Crisis averted!

The company, based in Texas, had built a reputation for reliability and environmental compliance, supporting some of the largest energy producers since its founding in 2018. To continue its growth trajectory and manage these outstanding balances, the firm was referred to Serve Funding by a long-time partner in the ABL financing sector. Michael and his team collaborated with a second-lien lender to secure a $750,000 term loan over 24 months with monthly payments. This enabled the company to resolve the aged receivables and provide additional working capital during this critical transition. With Serve Funding's assistance, the company stabilized its finances and was able to focus on capitalizing on new opportunities in the energy sector, continuing its rapid expansion while ensuring optimized drilling performance for its clients.

The owner-operators are a husband and wife team, specializing in residential and commercial foundation repair and build-outs. They had been operating over 12 years in business when they approached Serve Funding. The owners faced a time-sensitive partner buyout opportunity. Years prior, their company had merged with a complementary contractor, and the combined business thrived under a unified name. When the retiring partner decided to exit, he demanded a $150,000 buyout for his share of the business, placing the owner under immense pressure with a strict, 30-day deadline. They found Serve Funding directly on LinkedIn and turned to us for a quick solution to their pressing problem. Michael and his team moved swiftly, sourcing a lender and structuring the $150,000 as an 18-month bridge loan, designed with favorable early payoff discounts. This gave the client the breathing room it needed to settle the buyout without derailing the business operations. Six months later, the company was able to refinance the loan through a 10-year SBA facility, effectively converting the short-term debt into a more manageable long-term structure.

The company, utilizing proprietary technology to recycle polypropylene, raised an aggregate of nearly $1B through Ohio state revenue bonds as well as their stock offerings. As a pre-revenue startup, they sought creative ways to extend their cash runway, especially after using equity to purchase equipment that was not yet installed. A banker in Central Florida introduced them to Serve Funding, and Michael worked to secure financing for tens of millions, a challenging task for a pre-revenue company. After a thorough seven-month process involving two term sheets and 2 corresponding site visits, $22MM million was funded against one equipment schedule. About a year later, another $12MM was closed for a second schedule by a separate equipment lender sourced by Serve Funding. As the company approaches revenue generation, Serve Funding's efforts have provided some additional liquidity needed to support their growth, positioning them as a future leader in sustainable plastics.

The target was a profitable staffing company in the same industry, poised to enhance their service offerings and market presence. However, after two failed attempts to secure financing from other lenders, the firm was at risk of losing the deal due to growing seller deal-fatigue. That's when their investment banker reached out to Michael at Serve Funding for help. Michael acted quickly, securing a $515,000 short-term, revenue-based bridge loan that enabled the firm to meet the seller's deadline and close the acquisition. The bridge loan was structured with an early-out clause, allowing the client to refinance at a lower interest rate soon after the deal was completed. This not only ensured the acquisition but also saved the company a significant amount in interest costs, highlighting Serve Funding's expertise in managing complex, time-sensitive transactions.