Republic Business Credit Funds $750,000 Factoring Facility for Southeastern HVAC Company
Growth funding provides runway to expand into commercial accounts
NEW ORLEANS – After achieving success and notoriety through excellent service to its residential community, a Southeastern-based HVAC company sought the opportunity to grow with several large, commercial facilities. The company did not have a working capital facility, so it called Renasant Bank.
Renasant Bank in Alabama introduced Republic Business Credit to provide a growth orientated factoring facility secured by accounts receivables to increase the company’s access to working capital.
The company was facing two critical factors in determining the best financing solution. First, the company was still in its early, high-growth startup stage, which typically makes it more difficult to obtain a traditional bank loan. Secondly, the company’s commercial accounts were asking for extended terms of Net 60 and Net 75 days in exchange for significant commercial contracts.
Republic provided a $750,000 factoring facility that advanced up to 90% of its accounts receivables and provided eligibility across its extended payment term customers.
“Republic specializes in providing factoring facilities to rapidly growing companies that need to accelerate their working capital through receivables factoring,” stated Brian Daray, SVP, Underwriting Manager. “Thanks to the close relationship between the company’s financial advisor and Renasant, Republic was a natural choice for its first financing facility.”
Since providing the ledgered line of credit facility over the summer, the company recently executed additional commercial contracts that will allow it to more than double its business during the second half of the year.
“Our relationship with Renasant has provided tremendous opportunities to partner with companies that might not fit a traditional bank loan structure,” said Republic President, Robert Meyers. “We look forward to providing more creative solutions across the Southeast and the entire country with our national platform.”
About Republic Business Credit
Republic Business Credit is a nationally recognized commercial finance company supporting the working capital requirements of companies nationwide, including private equity and entrepreneurial businesses. Republic provides asset-based lending, e-commerce, ledgered lines of credit, factoring and Fast AR Funding. Republic partners with its clients to provide up to $15 million in senior credit facilities to rapidly growing businesses, start-ups and companies experiencing recoverable distress. Republic is recognized by the Secured Finance Network as one of the largest finance companies in the United States of America. Republic is proud to be headquartered in New Orleans with additional offices in Chicago, Los Angeles and Houston. Republic is a wholly owned subsidiary of Renasant Bank.