US Capital Partners, LLC has provided a multi-million dollar accounts receivable line of credit for NPACT America, Inc. (NPACT), headquartered in Jacksonville, Florida. US Capital Partners is a private investment bank that makes direct debt investments, participates in debt facilities, and arranges equity placements for small to lower middle market companies.
In 2011, NPACT’s largest manufacturer and supplier was acquired by a private company. After the acquisition, the private company donated the entire manufacturing business to NPACT. This resulted in one of the largest partnerships between a for-profit and a non-profit, with NPACT poised to become a major manufacturer of drug testing equipment. To support its current and future working capital needs, NPACT approached US Capital Partners to place a scalable accounts receivable line of credit.
“We are delighted to have financed this expanding non-profit, thereby helping to create many more jobs for the disabled community and for disabled veterans,” said Jeffrey Sweeney, CEO and managing director at US Capital Partners. “One hundred percent of NPACT’s receivables are with government agencies, with all payments received through a single government entity. The situation is problematic for most traditional lenders—because of the non-profit structure of the company, the concentration of receivables, and the government account debtors. Despite this, US Capital Partners was able to structure and provide a multi-million dollar revolver to support NPACT’s continued growth.”
Established in 2009, NPACT America is a Florida-based non-profit social enterprise with a mission to create meaningful employment opportunities for people with disabilities, including service disabled veterans and people who are deaf, visually impaired, or have a physical or mental disability. The non-profit provides drug and alcohol testing equipment to over 200 institutions and state agencies, designing products to meet a wide variety of specification needs. Currently, NPACT is the only provider of drug and alcohol screening products to the State of Florida.
Since 1998, US Capital Partners has been providing prompt, innovative, and reliable financing solutions including lending, equity financing, and debt re-structuring to businesses across the United States and abroad. US Capital Partners is a private investment bank, direct lender, co-lender, and lead financial arranger that specializes in asset-based debt for small to middle market private and public companies.