Wintrust Receivables Finance (WRF) closed a new $20 million credit facility for a Detroit-based provider of engineering and other high-end technical professionals. Through the years, the company has become the preferred staffing agency for some of the nation’s leading employers within the aerospace, automotive, oil and gas, power, and telecommunications industries. Their current clients include some of the largest industrial firms in the country. These large clients do require that the company provides their services under extended payment terms. These extended payment terms lead to some large accounts receivable concentrations and the firm needing a larger line of credit than similarly sized companies.
During the early days of the COVID-19 shutdowns, the firm saw a short-term decrease in revenue. During this time period, management did not feel they were given the support they needed by their incumbent lender and determined they needed to find a new financial partner. WRF was able to structure 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, and increased the size of the line of credit to support additional growth. In addition to providing the line of credit, WRF is also providing a corporate credit card program and a full suite of 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,” said Jason LeuVoy, senior vice president of WRF. “This new line of credit demonstrated the flexibly 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.”
WRF, part of its parent company Wintrust, provides aggressively structured working capital lines of credit from $1 million to $50 million for middle market companies across the country who are unable to obtain the level of financing they need through a more traditional commercial bank underwriting.