Haversine Bridges the Gap for ABL

The Situation

In a year marked by a tightening banking market and a cautious credit environment following the 2023 banking crisis, an asset-based lender specializing in serving SMEs found itself at a crossroads. Despite the challenging financial landscape, they experienced a significant surge in loan activity, driven by SMEs increasingly turning to private capital and ABL facilities. This influx of new business presented both an opportunity and a challenge: the lender needed to expand its capital base to accommodate the growing demand, necessitating an additional $25 million increase in their line of credit.

The Haversine Approach

“The level of expertise and experience within the Haversine team contributes directly to the accelerated achievement of our goals and vision.”  

~ CEO, Factoring & ABL

Financing & Business Issues

Financing Amount:  

$25,000,000

Business Issue:

The ABL firm, amidst a period of rapid growth and increased loan activity, faced the challenge of securing additional capital in a tightened banking market. They required an extra $25 million to support the influx of new business and maintain their momentum. Traditional finance firms, influenced by the cautious credit climate, were hesitant to extend additional credit, leaving the ABL firm in need of a reliable financial partner to bridge this gap.

The Win

Understanding the nuances of the specialty finance space, particularly ABL and factoring, Haversine stepped in to fill this crucial need. Recognizing the ABL firm's expertise, robust platform, and promising business pipeline, Haversine collaborated with the firm's senior lender to become a syndication partner. This strategic move resulted in Haversine providing a substantial $25 million of the increased facility.

This partnership was a game-changer for the ABL firm. The immediate availability of funds from Haversine’s co-funding partnership enabled them to quickly capitalize on their growing business opportunities. This was not just a financial win; it was a strategic expansion that allowed the ABL firm to support numerous SMEs seeking capital in a constrained market. The collaboration showcased Haversine's deep understanding of the industry's needs and its commitment to fostering growth and stability in the specialty finance sector.