In the spring of 2011 an ambitious mid-west based staffing agency knew they needed to change how they managed their finances. By the time they contacted Universal Funding they had tapped out a million dollar bank line and now owed payments. Simultaneously they were delinquent for over one hundred thousand dollars in back taxes for 941’s. The staffing company already had a payment plan in place with the IRS and was making payments on time. In reviewing the company profile, background, and revenue potential, Universal Funding determined that regardless of these other issues, they would be an ideal client. Unfortunately the bank that held the original loan was unwilling to consider a workout or subordinate.
Jeff Kinservik, Universal Funding’s Vice President of Sales, never wavered in his support for the staffing company. “Over the course of two years, I was working side by side with this company while they restructured their financial outlook,” shares Kinservik, highlighting the time where we continued to work with the staffing agency although they had yet to become a client. “I could see that there was a successful and profitable company buried under all of the financial woes.”
He played a key role in negotiating with the bank on the staffing company’s behalf. They were able to place the loan in forbearance while working out a settlement to bring the loan balance down by 35%. Within two years, the company was able to pay off the tax lien and sell off property totaling $500k, all while growing the business monthly revenues to over $500k. With the property sale and by factoring one month of invoices they were able to pay off the remaining bank balance. The first time they factored with Universal Funding was roughly two years after they sought out their services.