Although The Credit Junction uses data and technology to improve lending to SMBs, we focus our decision making on understanding businesses and the management teams that run them.
The company featured below grew to $100M in annual revenues a few years ago, but an industry downturn cut this number in half. To recover, they underwent a complete operational restructuring. As the market started to come back from its trough, the company was in need of growth capital to allow it to complete its turnaround and meet increasing demand for its services.
The Credit Junction provided a $2,000,000 term loan to the company, fueling their recovery and allowing them to prepare for growth.
ABOUT THE COMPANY
HQ Location: South Central, United States
In Business For: 5+ Years
Annual Revenues: $50M+
Management: Family owned and operated, 20+ years of industry experience
Customer Base: Many large, highly-rated corporate customers, including companies in oil & gas sector
Customer Concentration: 80% of their total receivables were due from their 7 largest customers, exposing them to additional risk.
Operational Restructuring: Company was cutting costs following drop in revenues from oil & gas downturn. However, management was able to remain cash flow positive throughout the restructuring period.
Insufficient Availability: Company was seeing a resurgence in volume and demand, but could not secure additional financing from other lenders to fuel their growth.
Existing Financing: Company had strong relationships with existing financing sources and wanted to maintain them.
The Credit Junction worked closely with the company and their management to craft a financing solution that met both their short and long-term needs.