A Bridge to Growth: Haversine's Strategic Financing Boosts Factoring Firm

The Situation

In 2023, amidst tightening regulations and more conservative banking practices, a thriving factoring company found itself in a challenging position. New business opportunities had increased, as had interest rates. To create more room for growth in their factoring platform while looking for a lower-cost funding partner, the factor began the process of moving to a more traditional bank lender. Timing was not on their side - given the banking crisis concerns that were developing in the space. As they sought to refinance their existing much more expensive and constrictive private lender with a bank line of credit, the bank underwriting process hit unforeseen delays and constricted availability. The factor needed to refinance their existing facility by a specific date or incur additional renewal fees and be locked into a longer-term agreement, one that also would not allow for growth.  

Recognizing the urgency of the situation and knowing that Haversine had in-depth expertise in the factoring space and in their unique market niche, the factor turned to Haversine for assistance.

The Haversine Approach

“We are very excited to gain Haversine Funding as a partner… for the additional capital to support our continued growth as well as their expertise and industry relationships.”

~ CEO, Factoring

Financing & Business Issues

Financing amount:  

$15,000,000

Business issue:

Faced with prolonged progress on setting up its new bank facility, the factoring company truly needed to move quickly to accomplish its goals, reduce its cost of funds and provide a launchpad for growth. Haversine swiftly stepped in and, within a week, was able to provide a master participation facility on several deals to bridge the gap, meeting the factor’s timelines. Then, within 30 days, Haversine completed due diligence on a broader facility, offering a $15 million senior line of credit to the factor.

The Win

With a deep understanding of the nuances within the specialty finance sector, particularly in factoring, Haversine's intervention proved instrumental. What began as a bridge participation evolved into a transformative $15 million senior line facility, addressing the factoring company's growth demands so they could help more businesses with their working capital needs. Although the rate was slightly more than the bank line planned, the available capital from the Haversine funding was much more. And, due to the number of funding solutions available, Haversine provided timely bridge funding and facilitated a seamless transition ultimately to a $15 million senior line of credit.