$3.1MM In Total Working Capital Medical Device Manufacturer, FL
This medical device manufacturer, headquartered in Central Florida, was referred to Serve Funding by a banker after narrowly missing the bank’s debt service coverage ratio requirements, despite steady growth over five years. They needed working capital to support longer payment terms as customers requested net-60-day terms, and to build deeper inventory for new, larger customer orders.
Over a six-month span, Serve Funding closed four tranches of capital. The first was a $400K, 12-month unsecured working capital loan with monthly payments, primarily used for adding inventory and supporting extended payment terms. Two months later, they secured a $1MM revolving line of credit backed by accounts receivable, enabling faster onboarding of new, high-volume customers.
The following month, the original term loan was refinanced into a $500K facility, maintaining the same rate and terms, while still remaining unsecured. Shortly after, the company sought funds to repay friends and family investors. With existing assets tapped out, Serve Funding arranged a $550K second mortgage on the owner’s home using a bank-statement-only approach. A month later, as sales surged, Serve Funding secured an increase in the AR line to $1.5MM.
DECEMBER 2024 UPDATE
Serve closed another term loan for an additional $550k for our client. The company is closing out 2024 at over $5MM in revenue which represents 30% + YoY growth.