CASE STUDY
The Client:
The client is a national environmental and industrial services provider specializing in remediation, waste handling, and infrastructure support. Their operations rely heavily on a large fleet of high-value industrial assets, including VacTrucks, water blasters, and other mission-critical equipment essential for field productivity. As the company continued to win larger projects and expand into new markets, access to reliable and scalable equipment finance solutions became essential to maintaining operational capacity and supporting long-term growth.
The Challenge:
The business was navigating a multi-year financial turnaround that created barriers to obtaining traditional equipment financing. For several years, the company operated with elevated leverage levels and carried negative equity on its balance sheet, making lenders hesitant despite operational stability. A recent debt refinance improved its financial structure, but the company only achieved a debt service coverage ratio above 1.0x in 2025. Historically low cash balances further constrained its ability to self-fund capital expenditures or invest in additional revenue-generating equipment. Although the company demonstrated strong customer demand and a growing pipeline of field work, its credit profile limited access to competitive financing options—particularly for specialized assets such as VacTrucks, which are essential to the environmental services sector.
Solution:
First National Capital leveraged its long-standing relationship with the client and deep experience in the equipment finance and asset-based lending markets to structure a solution that aligned with the company’s improving credit profile. After gaining confidence in the strength of the recent debt refinance and the company’s forward-looking financial performance, FNC placed greater emphasis on the collateral value of the equipment. VacTrucks, in particular, are highly liquid and retain strong secondary market value, enabling FNC to mitigate credit risk through an asset-focused underwriting approach.
FNC established a $3 million capex line of credit to provide the company with flexible, scalable access to industrial equipment financing as future needs arise. The initial $800,000 draw allowed the company to immediately acquire water blasters required for upcoming projects, ensuring no disruption to ongoing service commitments. This tailored financing structure preserved liquidity, supported fleet expansion, and positioned the company to compete more effectively for high-margin contracts. By combining a collateral-driven credit strategy with a deep understanding of the environmental services industry, First National Capital delivered a financing solution that enabled the client to continue strengthening its balance sheet while accelerating its operational growth.
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