Platinum Funding Group Provides $8 Million Factoring Facility For A Utilities Contractor
NEW YORK (June 4, 2008)-Platinum Funding Group has signed a two-year, $8.4 million factoring agreement with a maintenance contractor servicing utility companies. The maintenance company is a 100% minority-owned business located in Savannah, Georgia. It provides medium and high voltage underground and overhead cable to the utilities industry.
Platinum Funding Group negotiated an Inter-creditor Agreement with the current lender, Georgia-based Darby Bank, that will continue financing the term debt. This agreement was the key to completing the transaction. The client owed Darby Bank $1.5 million, including an $835,000 revolving account with progress billings and a term loan. Darby Bank demonstrated exceptional cooperation and professionalism in working with Platinum to arrange a pay down and payment structure program on the remaining balance.
"This transaction is remarkable because we were able to overcome many obstacles - losses, progress billings, some very slow paying debtors and a significant debt facility with a bank," commented Bob Hinson, Senior Vice President of Business Development at Platinum Funding Group. "In my 25 years in the business, I have never seen a bank work so well with a factoring company. Platinum and Derby Bank worked out a tri-party agreement and Platinum funded the client all in 7 business days."
"Platinum Funding Group provided solutions to our cash flow issues," said Walter Ward, Senior Vice President of the maintenance company. "Their experience and ability to relate to the business growth needs of our industry, proved invaluable. We are very satisfied and look forward to a long partnership."
