We’re Nursing This Nurse Staffing Co. Back to Health With Our A/R LOC
The Company
This is an Ohio-based nurse staffing company that provides nurses primarily to hospitals.
The Situation
The Company had a financing relationship with us in 2017 for a little over a year and then went on to bank financing. Becoming delinquent on gross receipt tax from Guam where it had a relationship with a large hospital, led to losses in 2019 which led to the bank exiting the Company. We then received a call from the CFO with whom we had worked in 2017 (she was Controller at that time).
The CFO, upon assuming her position, recognized that her predecessor had been improperly filing the tax returns and when she caught the mistake, the Company was way behind in payments. She accrued what was owed which was a big part of the 2019 losses.
The Solution
Even though management believed the challenges associated with the losses were behind them, the Company was not bankable. The CFO, remembering the good relationship she and the Company had with us in 2017, called us and asked for a credit line to pay the taxes on returns that had been filed incorrectly and to pay on other returns as they were filed to bring those taxes current. She also had to pay off an SBA EIDL loan. We provided a $1,500,000 Accounts Receivable Line of Credit to allow the Company to make the tax payments, pay off the EIDL loan and for working capital.
The Result
We knew and understood the business and were happy to assist it once again with an A/R Line. While you would think the business would benefit from COVID, it really didn’t because its focus is more on nursing for elective surgeries. Once elective procedures increase, the business will again become profitable and back to running optimally.
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.