Most growing companies should have a revolving facility in place because it enables additional growth in operations and limits the potential issue of growing faster than liquid capital. This was certainly true for Accord's newest client, a well-established contractor in Western Canada. As a leading independent commercial finance company, we understand it is critical to listen and learn about each client's circumstances to deliver a tailored solution based on their unique needs. Combined with our well-demonstrated experience, we can provide the most flexible solutions.

Background

Established in the mid 2000's and currently operating across western Canada, this mid-sized pipeline company offers a wide variety of services such as construction, maintenance, demolition, and fabrication/coating. The company has a strong management background and expertise in its industry.

Problem Critical need for working capital to facilitate numerous projects

Many small businesses are faced with the challenge of needing better cash flow to support a growing operation. Due to the numerous outstanding projects, an investment-grade accounts receivable facility was used. The company also wanted to prioritize flexibility to work through a turnaround. Hence, a financing solution from an alternative lender was the best option as a growth partner to address the need for additional working capital.

Challenge

Kyle Kreppenhofer from Ashdown brought the deal to Accord who diligently coordinated all details and activities with William Nurnberger, Director of Mid Ticket Business Development. They took the lead in addressing the concerns of the client one-by-one to efficiently structure an optimal deal.

The client was looking into a $15 million working capital loan to support its growth, as their projections show positive potential. In addition, due to high seasonality, a $7 million revolver was also applied for, but Accord recommended it should be adjusted to $5 million to allow for greater flexibility. It also included a term loan of $18 million to facilitate its expanding operations.

Solution Fast, versatile financing solutions for a growing business

At Accord, we leverage our unique combination of financial strength, deep experience and independent thinking to craft winning financial solutions. We brought together multiple divisions to help analyze, justify, and structure the financing to support the client's needs, while taking necessary risks and evaluating various outcomes.

Accord took the time and effort to understand our client's challenges. Using multiple products from Accord, we were able to provide the utmost flexibility. We offered a complete refinancing of outstanding debt to strategically enhance and reposition the company's growth. We successfully closed a new $26 million credit facility that will refinance their existing lender, help them achieve their growth plans, and gain a trusted financial partner.

Result

Through the combined effort from Ashdown and the entire Accord team, we developed a close and strong connection with the client through diligent underwriting, funding, and legal undertakings. In our determination to see our clients succeed, Accord came up with a unique solution to assist our client by providing $19 million in Term Loan, $5 million in Asset-Based Lending Facility (as collaborated across different Accord Divisions), and $2.5 million BCAP (Business Credit Availability Program) in working capital.

"We're driven by seeing our clients thrive. That's why we've assembled the industry's foremost team of experts who are committed to finding the best solutions to unlock our clients' potential. We pride ourselves on our ability to offer complete solutions. Our team's deep understanding of diverse financial instruments and market dynamics enables us to handle complex scenarios with agility and precision. This case exemplifies our commitment to delivering comprehensive and customized financial solutions that align with our clients' unique circumstances and objectives"

James Jang, President, Canada Small Business Finance

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Accord Financial Corporation published this content on 17 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2023 18:52:05 UTC.