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 one 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.
Over the next two years Jeff Kinservik, Universal’s VP of Sales, never wavered in his support for the staffing company. Before the staffing company ever became a client of Universal Funding’s, Jeff was working side by side while they restructured their financial outlook. 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%.
In those two years, the company was able to pay off the tax lien and sell off property totaling five hundred thousand dollars, all while growing the business monthly revenues to over five hundred thousand dollars. With the property sale and by factoring one month of invoices they were able to factor receivables and payoff the remaining bank balance. Mind you, the first time they factored with Universal was two years after they sought out their services.
The Universal Funding team saw through the financial messiness that encompassed the client and opted to advise them, negotiate on their behalf, and provide the funding they needed. If your business is ready for a financial restructure call 1-800-405-6035 to see how we can help.