Fueling Growth While Mitigating Risk with a $20,000,000 Participation Funding

How participation funding helped a factor expand capacity for a critical client without overexposure

The Situation

A national disaster response and recovery provider was experiencing rapid growth as demand for their services surged across multiple states. These large-scale operations required significant working capital to manage equipment, staffing, and logistics - often on very short timelines. The factor supporting this client had already increased the facility several times, reaching $80,000,000. To keep up with the client’s expansion, the facility needed to grow again, this time to $100,000,000. While the increase would allow the client to continue taking on new projects, it also created a concentration risk for the factor. The factor needed a way to continue backing their client’s growth while protecting their portfolio and long-term stability.

The Solution

Haversine Funding stepped in with a $20,000,000 participation, providing capital behind the scenes so the factor could share the exposure. This structure enabled the factor to:

• Support a valued client’s growth without overextending internal resources.
• Reduce concentration risk on a single, large relationship.
• Maintain direct client management and servicing without disruption.
• Scale quickly to match project-driven spikes in funding needs.

By working together, the factor could retain a high-performing client relationship and continue to say “yes” to growth opportunities - a win-win-win for the client, the factor, and Haversine.

The Results

With Haversine’s participation funding, the factor was able to:

• Confidently expand the client’s facility to $100,000,000.
• Keep their overall portfolio balanced and diversified.
• Strengthen their position as a trusted partner to a growing client.
• Build a model for managing similar opportunities with other clients.

Why It Matters

When a client’s growth accelerates, factors and lenders must balance two priorities: keeping the relationship strong while managing their own risk. Through participation funding, this factor was able to achieve both, fueling their client’s success while safeguarding their future.