Republic Provides a $2.0 million Growth Factoring Facility to Texas-Based Oil Field Staffing Firm
August 15, 2019
August 15, 2019
New Orleans, LA – When a Texas-based temporary staffing company received two new contracts with large energy production companies, they sought a payroll funding expert to support their growth. Republic Business Credit collaborated with their regional bank to structure a factoring facility that focused on the new customers while enabling the bank to retain both the line of credit and treasury management services. Republic was selected by the bank and company over several other factoring companies because of its ability to move quickly and fund within a week.
The company was formed by European expatriates and oil field service veterans in the late 1990s. The company became a full-time job for the founders upon successfully landing two new customers, only to discover their bank line of credit imposed customer concentration limits. The founders were determined to find a solution that allowed them to retain their banking relationship and partner with a local growth capital facility. The company provides technicians, drivers, and general support staff to midstream energy companies.
Republic provided a $2.0 million Selective Factoring Facility combined with an unbilled advance structure to provide funding against their invoicing prior to formal customer approval. When companies are working in the oil field space, their employees are often miles away from their operation centers that prepare the billing. The time-lag of getting the paperwork processed and billed causes additional cash flow challenges. Republic provided the unbilled account receivable facility to help the company make payroll each week to bridge this time-lag.
“Companies working in the Permian Basin and Eagle Ford shale are challenged by unprecedented supply and demand issues due to the extreme growth in the region,” said Robert Meyers, President of Republic. “We have many customers in the oil field industry, so we are able to understand the rapid growth demands combined with the geographic challenges presented by lacking administrative infrastructure in the area. We partner with many of the downstream, midstream and upstream production firms to support their essential supply chains.”
Republic Business Credit partners with banks, accountants, sponsors, lawyers and investment banks to collaboratively support entrepreneurs across the United States, to create value, by enabling them to focus on growing successful businesses.