Hey DF,

A quick note on some recently closed transactions where the prospect were facing some challenges and we provided solutions. As many of you know, we are Seacoast Business Funding, a division of Seacoast National Bank. We offer flexible working capital solutions in the forms of factoring and asset based lines of credit.

Client 1: $24Mil Southeast based staffing business that was factoring with one of our competitors. The owner took out a cash advance to buy out a partner. The high factoring rates and cost of the cash advances were stifling growth and eating away at profits. We offered a $3.5Mil factoring facility that gave a better advance rate and cut cost by over 45%. We also offered a $400K term note to refinance the cash advances that was over a 60% savings. The Company now has more availability to fuel growth and the cost savings is providing additional working capital and adding to profitability.

Client2: Importer and distributor of hardware. The company sells direct to end customers and large distributors. Revenues last year were around $6Mil. The Company factored in the past, but was not thrilled with the rates. They entered a line of credit with a local bank, but was not getting enough availability on their receivables ($250K LOC vs. $800K in AR outstanding). The Company had a large backlog of orders and just could not keep pace with demand using the bank line. We offered a $1.5Mil factoring facility that was a third of the rate they had paid in the past. The Company now has plenty of availability and can fill orders quickly and also obtain discounts from suppliers as he can pay much quicker.

Client3: Fast growing specialty manufacturer. Revenues jumped from $5Mil to well over $12Mil year over year and the Company is projecting sales in excess of $20Mil for 2018. The Company had a small line with their bank ($500K). Their bank was not willing to increase the line due to customer concentration and hyper growth. To augment working capital needs took out three cash advances totaling $400K. The advances helped, but was still not keeping pace with the growth of the Company and the advances we getting expensive. With $1.7Mil in AR and $1.5Mil in inventory, we offered a $3.5Mil ABL facility. The pricing was slightly higher than bank rate, but significantly lower that the advances. The added liquidity on AR and including inventory helps with liquidity and the company can keep pace with demand and again offer suppliers quicker pay for discounts.

We listen first and move fast. Client 1&2 closed within 14 days. Client 3 closed in 3 weeks. And yes.....we gladly paid referral fees.

Best,

Kevin