United Capital Funding Group LLC, a Florida-based factoring firm with offices in Tennessee provided a $3 million accounts receivable facility to a Tennessee-based commercial printing company in partnership with KLC Financial, a Minnesota-based equipment finance firm, to issue an equipment loan. This was secured after the company was denied an increase in its SBA-guaranteed bank line of credit.

The company had contracts with U.S.-based manufacturing and packaging companies and experienced accelerated growth as demand grew. The company had a bank line of credit, which was guaranteed by the Small Business Administration (SBA), but the structure was insufficient to support its growth demands.

“In partnership with KLC, this solution presents a complete package for this company, allowing them to maintain steady cash flow by using two distinct sources of collateral to secure working capital,” said Matt Perkins, Business Development Officer at United Capital Funding.

To assist with maximizing the company’s revenue opportunity, KLC Financial provided a $275,000 equipment finance loan to acquire two lightly used machines to help automate the pouching and slitting in its packaging process.

In review for an invoice finance facility, United Capital Funding reviewed the company’s financial performance and determined a credit facility of $3 million to facilitate more working capital in the company’s balance sheets. After successfully onboarding this client, the company will generate additional profitability and increased shareholder value from increased revenue, stable gross margins and relatively flat fixed fee expenses. KLC Financial and United Capital Funding are wholly owned subsidiaries of Gulf Coast Bank & Trust Company, an FDIC-insured commercial bank.