Problem: Gulf Coast Business Credit was referred to an oilfield service company located in Houston, Texas that had a large concentration ($1.6MM) in Lyondell (pre-bankruptcy) receivables with a total facility size of $3.5MM. The oil company was transitioned into the bank’s special assets department a month after the announcement of the Lyondell bankruptcy. The oil company was on the verge of bankruptcy at this point as well, they could not cover payroll and the bank was not willing to provide additional availability.
Solution: GCBC worked with the oil company and the special assets division of the bank to pay down the line of credit by utilizing receivables other than Lyondell to immediately reduce the bank’s exposure. The bank termed out the Lyondell portion of the line and entered into an intercreditor agreement with GCBC where GCBC held back 4% of each funding to the oil company which was wired directly to the bank monthly in addition to the monthly term payment made by the company until the bank was paid off in full.
Problem: A service company that provides virtual call centers with a unique business plan that utilizes call center agents who work from home came to Gulf Coast Business Credit for help with a new contract. This service company signed a contract with a telecommunications provider that requires them to hire, train and staff 250 home-based customer service representatives.
Solution: Since this immediate expenditure went beyond the financial scope of the service company’s traditional banking line of credit, they sought a factoring company to support them in this new contract. GCBC was able to partner with the service company’s bank to structure an arrangement where GCBC factored only the receivables of the new contract, providing a much needed instant cash flow enabling the service company to hire and train their new staff immediately.
Problem: A rapidly growing wholesaler that provides various consumables to major travel centers nationwide was having a hard time getting financing due to a high debtor concentration.
Solution: Gulf Coast Business Credit was able to provide them with a $2MM working capital facility, which gave them access to the cash flow they needed to leverage the opportunity for growth into actual growth. In special instances, and by request only, Gulf Coast Business Credit can provide purchase order financing for unusually large orders.
Problem: After obtaining a new client, a Texas-based technology consulting and staffing company had to increase their staff to support this new business, and they were concerned about meeting payroll to support the growth. Since the company had less than two years of business and concentrations in their client base, they were unable to obtain traditional financing.
Solution: The banking partner referred the company to GCBC for accounts receivable financing as a solution. GCBC was able to provide $100K working capital facility to the technology company.