Situation:

A Florida based manufacturer of highly engineered power systems, enclosures, trailers and tanks for use in the on-site power generation industry. The economic downturn caused most of their projects to be placed on hold or cancelled. Due to this, and the ensuing drop in Sales and Production, the company was faced with a significant operating loss and cash flow deficiency. In 2011, the company saw a resurgence in projects as government funds became available. Unfortunately, their banks would not provide any additional financing to support the new revenue growth.

Solution:

The banks agreed to subordinate their first lien position on the accounts receivable, allowing Forest Capital to provide a $500,000 facility. This provided the company with the cash flow they needed to purchase raw materials and meet payroll.

Results:

The company was able to meet the demands of their product line and continue to grow their business.