Wintrust Receivables Finance Provides $19.5MM Line of Credit to Hospitality Staffing Firm
Wintrust Receivables Finance closed a $19.5 million credit facility for a Midwest-based provider of hospitality staffing services. The company specializes in the recruitment and placement of hospitality professionals. The company's clients include corporate dining companies, country clubs, hospital food service companies, special events centers, stadiums and hotels.
Prior to the COVID-19 pandemic, the company experienced consistent year-over-year growth and was looking to exit a high cost of capital line of credit with a non-bank lender. However, during the early days of the COVID-19 pandemic, the firm experienced a decrease in revenue. During this time period, Wintrust Bank provided the firm with multiple rounds of Paycheck Protection Program funding. The company's management team used this time to expand into additional markets outside of the hospitality vertical.
By mid-2021, the company's revenues were trending above their pre-COVID-19 levels and the company was back in the market to refinance the line of credit. Wintrust Receivables Finance structured a new line of credit for the company that included no financial covenants, extended availability on accounts receivable generated under extended payment terms, no customer concentration limits, an increased size of the line of credit to support additional growth and reduced cost of capital. In addition to providing the line of credit of credit, Wintrust Receivables Finance is also providing treasury management services.
“We are excited to partner with this excellent management team and help support their current working capital financing needs and future growth opportunities,” Jason LeuVoy, senior vice president of Wintrust Receivables Finance, said. “This new line of credit demonstrates the flexibility and creativity the WRF team takes when considering the financing need of any prospective client. And the result is a winning partnership for both the client and Wintrust Bank. The WRF team has a long track record of financing staffing companies, and we think this transaction will make another excellent addition to our portfolio of temporary staffing clients.”