Commercial Finance Partners Closes $750,000 Accounts Receivable Facility for SBA-Financed Security Services Acquisition
The transaction was referred by the SBA lender, which sought post-closing liquidity for the borrower; CFP executed the accounts receivable subordination alongside the 7(a) closing.
BOCA RATON, FL — Commercial Finance Partners (“CFP”), a debt advisory and direct lending platform, has closed a $750,000 accounts receivable purchase facility for a St. Louis-based contract security services company that recently completed a change-of-ownership acquisition financed with an SBA 7(a) loan.
The company provides armed and unarmed contract security services across Missouri and southern Illinois. The acquisition was a second-generation family transition, with the incoming owner acquiring the business from his father and his father’s partner.
The referral came directly from the SBA lender, which wanted the borrower to have a working capital facility in place at closing rather than carry additional term debt. Because the lender held a blanket first lien on all business assets, the structure required an intercreditor agreement subordinating accounts receivable and inventory to CFP while preserving the lender’s first position on all remaining collateral. CFP executed the subordination concurrently with the SBA closing and funded the first advance from its own balance sheet the day after documents were signed, at a 90% advance rate against eligible receivables.
“The SBA lender brought us this deal, and that is where a lot of our AR volume is coming from right now,” said John Buanno, President of Commercial Finance Partners. “Banks and credit unions want their borrowers walking out of a closing with liquidity, not with more term debt. The piece that usually slows these deals down is the subordination — we do a lot of them, and we can get an intercreditor executed on the same timeline as the 7(a) closing.”
CFP works with SBA lenders nationally on 7(a) and 504 transactions that require an accounts receivable or inventory carve-out, and funds accounts receivable facilities directly from its own balance sheet.
About Commercial Finance Partners
Commercial Finance Partners is a Boca Raton, Florida-based debt advisory and direct lending platform serving lower middle market and middle market companies nationally. CFP funds accounts receivable facilities directly from its own balance sheet and advises clients across the full capital structure, including SBA 7(a) and 504 loans, conventional term debt, asset-based lending, bridge financing and structured private credit.
Media and Referral Contact
Darren Palestine | Managing Partner
(561) 948-2329 direct | (954) 501-0241 cell | (561) 948-0769 main