This Louisiana firm manufactures drilling tools for the oil and gas industry.
The company had achieved minimal profitability by its third year in business and projected a doubling of sales with a six-figure profit in its fourth year. However, banks were skeptical about those projections, and the firm could not access the additional capital it needed to grow through traditional means.
The company started seeking other options for financing. One of the loan officers it approached suggested factoring receivables and referred the company to Evergreen. Evergreen helped the company enter a factoring agreement that provided immediate cash advances for its invoices, allowing the company to double its revenues.
After 15 months of factoring — including the projected year 4 growth spurt coming true — the company returned its financing strategy to a bank line of credit. Evergreen’s help with factoring reduced the need for debt financing and allowed the business to essentially self-finance its next stage of growth.