The company is a national healthcare service provider with more than 30,000 employees and physicians dedicated to providing the highest quality healthcare.
The customer had millions in overdue invoices (6 -9 months old) with equipment vendors due to a leasing company’s inability to provide committed financing for their specialized IT collateral at 15 different hospitals. This created a number of pressing issues, including a “hold” on delivery and activation of this product for their other facilities which was instrumental for them to properly record usage of their pharmaceutics and products. This situation also presented a possible “double taxation” which would result in six-figure additional expenses. The customer’s hospital acquisition history involved inheriting multiple lender’s UCC filings against their company. Also, many key contacts in the finance group were shuffled within the organization to other groups, which created a lack of continuity and challenging communication.
First National provided a $15MM credit approval for these specialized assets under a structure that eliminated the double taxation and the accompanying financial penalty. Within in a short period, First National was able to get the customer current with the vendor. ahead of all UCC’s and maintained constant dialogue with the supplier. We are now a preferred financing option for the vendor as well. Our administrative team alongside the customer’s legal team helped amend or terminate 20 +UCC’s to allow lenders to perfect their security interest into their collateral without additional required paperwork.