Win-Win Financing: How Haversine's Strategic Alliance Fueled a $2,000,000 Analytics Staffing Venture

The Situation

In the increasingly competitive realm of analytics staffing, an asset-based lender identified a promising company in need of refinancing its traditional bankline. With banks continuing to tighten credit, the company faced a challenge when its current lender declined to renew their line of credit following some financial setbacks in 2023. Despite a strong recovery by year-end, returning to profitability and meeting all formula requirements, the company found its bank unwilling to proceed with renewal. Amid today’s more restrictive credit environment, the ABL group saw an opportunity to support the company by offering a refinancing solution. However, the deal's size exceeded the ABL lender's typical funding capabilities, as they are a relatively new lender focused on gradually building their portfolio. To manage portfolio concentrations and move forward, the ABL group reached out to Haversine to participate in the majority of the deal.

Financing & Business Issues

Financing Amount:

$2,000,000

Business Issue:

Facing the larger-than-usual deal size, the finance company partnered with Haversine not just for financial backing but also for a collaborative approach to underwriting. Both parties brought their expertise to the table, with the ABL group leveraging its solid background in asset-based lending and Haversine also contributing its broad experience, as well as capital. This partnership was key in facilitating the deal, especially given the tightening credit conditions and the increasing relevance of ABL and factoring solutions in the private credit market.

The Win

This collaboration led to Haversine's strategic involvement funding in this $2,000,000 transaction, marking a significant step for the finance company in expanding its operations within the specialty finance sector. The partnership not only enabled the refinancing of the company's existing bank line but also reinforced the company's position for future growth. By combining resources and expertise, Haversine and the ABL group successfully navigated the deal, showcasing the power of collaboration in overcoming portfolio limitations and supporting the analytics staffing company’s continued success.