Haversine's Partnership Fuels Fast-Track Success for New Factoring Startup

The Situation

Launching a factoring company is a complex endeavor, requiring not just expertise and ambition, but also capital and a solid operational foundation. A seasoned factoring professional, backed by an equity sponsor with a following of a promising book of business, encountered this very challenge. Traditional banks, hesitant to finance a new venture, saw the potential but required a limited track record before committing to a senior line of credit. That's where Haversine stepped in to help this factoring entrepreneur transform their vision into reality.

Financing & Business Issue

Financing Amount:

$6,000,000 Senior Line of Credit

$3,000,000 Junior Line of Credit

Business Issue:

Recognizing the opportunity and understanding the startup's needs, Haversine stepped in to fill this interim funding gap. We provided a $6,000,000 senior line of credit, the necessary fuel to kickstart the venture. This capital solution allowed the startup to build their operational infrastructure, hire key talent, and begin onboarding clients. With Haversine's backing, this new factoring company quickly was off the ground, growing from a promising concept to a thriving business. They implemented systems, built processes, and quickly established a growing client base. In only a few short months, they created the solid foundation the bank first sought.

Impressed by the startup's progress and now confident in their potential, the bank entered the picture, offering a lower-cost senior line of credit. Haversine seamlessly transitioned into a subordinated debt position, providing a $3,000,000 flexible junior line to complement the bank's financing. This blended capital solution optimized the startup's cost of capital while ensuring they had ample funding to fuel their continued growth.

The Win

Haversine's role extended beyond simply providing capital. We acted as a strategic partner, offering guidance and expertise throughout the startup's journey. Our deep understanding of the factoring industry and commitment to tailored solutions enabled us to adapt to their evolving needs, ensuring their rapid ascent to success. Thanks to Haversine's initial investment and ongoing support, the startup quickly emerged and is now a definite contender in the marketplace. Their overnight success story demonstrates the power of flexible funding solutions, strategic partnerships, and a shared commitment to fostering growth.

Are you a factoring entrepreneur looking for a financial partner who understands your needs? Contact Haversine Funding today to learn how we can help you turn your vision into reality.