The Customer
- A private equity–backed commercial janitorial and facility maintenance company with a strong footprint across the Southeast.
- Actively growing through strategic acquisitions, having integrated multiple smaller janitorial businesses over the past few years.
- Recently secured several large-scale contracts with national “big box” retailers and corporate clients requiring immediate scaling of equipment and workforce.
Challenge
- The company faced a significant need to purchase new equipment including vacuums, scrubbers, extractors, and other specialty tools to service newly awarded contracts.
- Although they had cash on hand, management preferred not to tie up liquid assets in depreciating equipment, prioritizing capital for continued M&A activity.
- The prior year’s performance had been impacted by rising labor costs and the unexpected loss of a major client, which limited their ability to expand existing bank lines.
- To capitalize on growth opportunities, the company needed a flexible financing solution that could scale with contract demands and operational expansion.
- There was also an operational need to simplify vendor payments and reduce the administrative burden of managing multiple equipment purchases.
Done Deal
- FNC structured a $5 million equipment line of credit that the company could draw from over time as new equipment needs arose.
- This facility provided the flexibility to purchase equipment in stages, helping the company match capital outflows with revenue from newly signed contracts.
- FNC paid vendors directly after verifying invoices, reducing the administrative workload for the client and streamlining procurement.
- To date, FNC has funded three separate equipment schedules totaling over $5 million, with additional availability remaining for future purchases.
- As a result of the new contracts and strategic acquisitions supported by this facility, the company’s performance has improved significantly, leading to interest from potential buyers in the market.
