IT Staffing Florida
Start Up Staffing Agency
The business was established in 1993, and later had to relocate its manufacturing and equipment to the state of Illinois. Our client (The Buyer) came to us late last year and was frustrated with the original factoring company he had decided to go with on funding his acquisition transaction.
The original factoring company he chose, had charged over $20,000 in due diligence and retainer fees and up until last month (March 2020) our client didn’t even have a term sheet or documents. As you can imagine the seller and the buyer were getting anxious and didn’t see any progress with the acquisition.
The client called us and asked if we can take over and help him to the finish line on this acquisition. We quickly gave the client a term sheet, no upfront fees to begin nor did we charge any fees after the funding. This was a very simple process since we have done several merger and acquisition deals like this in the past.
Our client already had a letter of intent with the seller and they entered into a Stock Purchase Agreement. There was a bank line of credit and equipment term loans to take out by paying off the bank. The transaction required an accounts receivable finance agreement to take out the accounts receivable balance. We obtained an equipment lease company to purchase the equipment under a sale lease back, pay off the bank on the equipment portion and create a new lease agreement with the updated new ownership. The seller agreed for the remaining balance to finance a note for the buyer to be paid over time and rented the property to the new ownership.
On April 2nd 2020, we received a complete application package and during all this Covid-19 situation with account debtor payables department working out of their homes, verifying invoices was not as simple task as before. Every day we made progress, and finally were able to close on the transaction on April 20th 2020 which normally would take 3 to 5 working days. But come to think of it, not too many lenders are funding during these unforeseen times. While we were sending the funds for this transaction yesterday, oil futures contracts dropped below zero.
1st Commercial Credit makes the funding process simple to understand and proceeds with underwriting criteria that is relevant to the transaction.
Contact 1st Commercial Credit if you have a merger and acquisition deal to fund, we have many resources and knowledge on how to get these deals done fast, and economical.
18 Years In business & Over 3,200 Clients Funded