CFR’s Recently Funded Deals

2019-09-27T12:29:28-05:00

CFR recently closed two out of three deals referred to us by local banks.   Here is a brief overview of each of these companies and why they worked  or did not work for us.

CFR’s Closed Deals

Bus Transportation Company
$200M Factoring Line of Credit

Due to the start-up nature of this company, the bank was unable to approve funding. This young and growing company was in need of working capital to fund their weekly payroll, maintenance of their buses, and other expenses related to their operation. In addition, the owner had several personal IRS tax liens outstanding, which he did not know about. Not only was CFR able to close a $200M line of credit for the company, but we also assisted and consulted with the company to negotiate a reduced payment plan on what he owed to the IRS. The owner sincerely thanked CFR for helping him with his outstanding tax liens. This marked a record first time for CFR being actually thanked for pointing out IRS tax liens!

Restaurant/Catering Company
$100M Factoring Line of Credit

A company, which is a restaurant, was short on cash flow for two reasons.  First, it recently expanded into catering for hospitals and commercial establishments.  Second,it’s major customer had 60 day payment terms, which caused a greater cash flow shortage. The company needed a line of credit to fund it’s payroll, food costs, and other expenses related to expanding into the catering sector. In addition to a cash flow shortage, the company’s financial statements were not accurate or reliable, despite the fact that the company contracted with a large bookkeeping company. CFR was able to provide the company with a Factoring Line of Credit for funding needs and consulted with the company on more reliable book keeping options.

A Deal We Could Not Close and Why

Solution

The company needed a one-time, two week $50M line to fund their payroll until it collected it outstanding invoices. This case did not work for CFR due to the one time funding need; however, CFR was still able to help them find a solution to their cash flow shortage.  Although CFR rarely recommends MCAs to a company, CFR directed the company to an MCA due to the small amount needed and short term nature of funding needed relative to the $1MM in outstanding A/R. An MCA was a quick option for the company.