CapFlow Funding Group is pleased to announce the closing of a $500,000 second-position factoring facility for a New York-based security staffing company.
The company required additional working capital while maintaining its existing senior financing relationship. CapFlow structured a second-position facility behind the company’s existing lender, providing access to liquidity tied to its accounts receivable without requiring the business to replace its current financing.
“Security staffing companies often face significant cash flow pressure as payroll obligations come due well before customers pay their invoices,” said Bryan Jimenez, Sales Associate at CapFlow Funding Group. “This facility gives the company additional working capital to support payroll and continue taking on new business while keeping its existing financing structure in place.”
CapFlow’s second-position factoring program is designed for businesses that already have a bank, SBA loan, MCA, or other senior financing in place but still need additional liquidity. By taking a junior position and working alongside the existing lender, CapFlow can provide businesses with access to capital that may otherwise be unavailable through traditional financing channels.
“This transaction is a great example of how a flexible second-position structure can solve a working capital need without disrupting an existing lending relationship,” said Aaron Fernandez, Underwriter at CapFlow Funding Group. “We were able to evaluate the company’s receivables, understand the existing capital structure, and build a facility that provides meaningful additional liquidity.”
With the new $500,000 facility, the security staffing company can better manage the timing gap between payroll and customer payments while positioning itself to pursue additional contracts and continued growth.
CapFlow Funding Group provides customized working capital solutions, including traditional invoice factoring, second-position factoring, FactorOne, mFactor®, and FactorLOC.
