nFusion Capital recently provided a $6 million asset based lending facility to an established electrical contracting company providing services for commercial, residential, industrial, and custom electrical projects. Founded in 2005 in Washington state, they now serve the Pacific Northwest region.

Despite strong profitability and consistent growth, the Company needed additional working capital to keep pace with expanding project demand. Their existing lender, however, made a strategic decision to reduce exposure to the construction industry and required the Company to resolve its $4 million line of credit within a short timeframe. As they searched for a new lender, a local bank — who was pursuing the Company’s depository business but unable to meet their lending needs — recommended nFusion Senior Vice President Curtis Powell, who is a construction financing expert.

Leveraging their deep construction industry expertise and flexible approach, nFusion quickly structured and funded a customized asset based facility secured by receivables and inventory to meet the liquidity needs of the Company. They were also able to meet the previous lender’s deadline to satisfy the existing $4 million debt. The financing provided peace of mind and allowed the owners to take on more projects right away, knowing they had access to steady cash flow. With immediate financing secured, the Company is now positioned to pursue its long-term goal of transitioning to a traditional line of credit.

“Though this deal did not unfold exactly as anticipated, we worked with all stakeholders to create a win for everyone,” said Curtis Powell, nFusion Capital Senior Vice President, Business Development. “The community bank won the Company’s depository relationship, the Company received the additional funding they needed to grow, the previous lender was satisfied, and we earned a new lending relationship.”