After Audit, We Doubled Down for this AZ Software Developer
The Company
This is an Arizona-based developer of software that automates the arrangement of property management and renovation services for REITS and property managers. The Company started in 2019. In 2020, business ramped up significantly – the result of the owner’s industry expertise and experience with contacts that would ultimately make up his customer base.
The Situation
The business initially developed platforms to connect REITs and property managers with service providers (HVAC services, janitorial services, etc.); whatever was needed to service properties. The owner raised a great deal of money to cover those original costs and to continue on its business plan to develop software to automate the process. In order to pay its vendors quickly (which was necessary to get top-tier vendors its customers expected), the Company also needed additional funds for working capital.
The Solution
The owner’s banker referred him to Celtic Capital for a working capital line of credit. Our proposal was for a $2,000,000 facility but after the audit, seeing the success the owner was having signing up customers, the huge growth projections, and the owner’s request for a larger line, we ultimately funded a $4,000,000 Accounts Receivable Line of Credit. This was a fresh money deal; no pay-off required.
The Result
If the Company hits its goals, and at this point, there’s no reason to think it won’t; the owner may be back for an even larger Line.
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.