April 3, 2023

Haversine Provides Senior Secured Line for a Factoring and Asset Based Lender to Grow

Are you a growing factoring company looking for a line of credit? Take a look at how Haversine was able to help one factoring and asset-based lending company build its portfolio to what is now a $15 million line of credit.

Are you a growing factoring company looking for a line of credit? Our lender finance offerings can be a viable source of capital for your business. And, not only will we provide financing for your funding platform, our in-house team can help identify efficiencies, including report writing and process improvement suggestions, assist with policies and controls, and help with underwriting if needed on specialty transactions, all while providing industry insight, trends and metrics.  

Ultimately, our goal is to help prepare your business for a more traditional bank line of credit. Once that occurs, you may even want to roll part of the Haversine debt into a junior lien position behind your new bank partner.  

Take a look at how one factoring and asset-based lending company was able to build its portfolio with what is now a $15 million line of credit.  

Quick Overview: Factoring & ABL Platform Receives Funding for Growth

In early 2021, Haversine Funding provided a senior secured lender finance facility to a factoring and ABL company focused on various industries from telecom to distribution. This newly formed group had some capital, a small portfolio and a lot of experience in the industry. To expand their business, they needed a line of credit and additional funding to fill their funding gap.  

Haversine was able to step in and structure a revolving line of credit effectively based on 85 percent of the factor’s eligible advances to their clients, plus an additional 10 percent gap advance line to support the business. The effective advance rate worked out to be over 95 percent initially, while the company built up equity, reducing this net advance over time.  

And, since the Haversine team has deep experience in factoring, inventory, and other asset-based lending products, this senior line of credit gave eligibility to other collateral types – not only receivables – giving the lender a competitive advantage in the marketplace. This unique funding structure provided flexibility to the owners, so they could focus on building the foundation and infrastructure for the business for scalability into the future.    

Today, that once smaller line of credit has increased to $15 million with more plans for continued growth for the coming year.

Loan Structure:
Line: $15,000,000
Type: Revolver
Product: Senior Secured Capital for Factor and Asset Based Lender  

Product Overview: Senior Secured Capital

How does the Haversine senior secured debt facility work? Factors and lenders that have limited operating history or capital may not yet qualify for lower rate, senior lines of credit at major banks. Until then, Haversine can step in with a senior line of credit (and so much more). Our terms are designed to be more flexible than those of a bank, so we can offer clients a line of credit they can use to grow their business.

We are here to help you succeed and grow your business.