The story behind the $5,000,000.00 Credit Facility Secured by Amerifi, LLC.
CEO Edward DeAngelis is preparing the company for incredible growth in 2019. The company is positioning itself as the go-to broker in the market today when your company is in need of big cash! Amerifi’s current portfolio consists of over $50 million dollars in transactions over the past 18 months with a wide variety of products to serve the market. Ranging from mostly traditional like products, ABL (asset based) facilities, term loans, lines of credit, A/R financing and more. We are consistently adding niche resources to our arsenal of products to serve the markets need of America’s thriving businesses.
“You can never have too many resources and you never will go wrong by doing what’s best for the client”.
Finding the best broker and a trusted advisor can literally be the difference between success and failure with many businesses today. Hundreds, maybe thousands of brokers are operating with limited resources and are continuously steering clients into more expensive products when many of these clients may be qualified for lower cost options. This has become an ongoing epidemic in the market today. Amerifi offers creative, transparent, affordable financing for a multitude of business needs.
Amerifi is off to the best start possible to the new year and an amazing stretch in the past 6 weeks securing more than $11.2 million in financing. While facilitating more than one multi million dollar facilities in the past few weeks, the latest just a week ago on January 8th, a $5,000,000 LOC facility to a PA based office furniture business.
This isn’t just another story of a $5mm funding. It’s the history of this deal and the story behind it that makes it special! Due to a major tax lien issue over the past few years, the client has been unable to get their existing bank debt of $1.5mm increased. Banks typically want no parts of companies with a history of tax liens or any open tax lien for that matter.
With the furniture company’s latest acquiring of a few major corporate accounts, revenues have jumped from $9mm in 2017 to just shy of $20mm in 2018.
With no bank financing in place and rapid growth of 100% in 2018, the client was forced into taking multiple back to back 6 month pricey cash advances with daily payments in order to facilitate its increase in purchase orders. The client has been financing the business through these advances for more than 4 years now.
This funding was being used to stock inventory & more importantly facilitate large purchase orders with some recent PO’s of over $1mm. These goods were being shipped in containers from overseas and in most cases the manufacturer must be paid once the containers hits customs. By the time the goods finally arrived, they needed to be processed, put together and scheduled for delivery and installation. The companies sales process can take a few months from the time the goods arrive at customs, then another few months to be paid from its clients. In many instances it could be 6 months from the time the order is placed until the client is paid.
With no other options at the time, the cash advance product served a great void to keep the company financed to continue business as usual. The long term effect was the cost of funding began eating into the companies profit margins and eventually into the cash flow.
Amerifi worked with the client until the lien was finally released by the IRS in 2018 and we immediately went to work. With company assets of $3mm in A/R (accounts receivables), $3mm in real-estate and over a million in inventory, this made for a prime candidate for a senior secured, interest only, line of credit facility taking out the banks $1.5mm balance and paying off $500k in advances. The end result was the net of close to $3 million in liquid capital for growth.
A $400,000 advance on a soon to be $5mm line was requested and granted on 12-27-2018. Funds needed to clear a few containers while the underwriting process began. The $5mm facility was actually funded on Tuesday January 8th in only 8 business days. This is unheard of in the industry especially working through the holidays. With interest rates in the teens and a low monthly payment (interest only), the client now is not positioned with the operating capital needed to facilitate all new purchase orders from start to finish without worrying about the 4- 6 month sales cycle. This line of credit was critical to the continued success & future growth of this 3rd generation family owned company of more than 80 years in the biz!
With early payment discounts in place and growth on the rise, our client will soon be looking to transition itself back into bank financing with an expected timeframe of 6-12 months.
This is just one of many of Amerifi’s success stories of how it aids its client by providing affordable solutions in the most critical time of need. Many firms use Amerifi as an intermediary bridge until they are able to secure bank financing. We are a supplement to bank financing with senior secured facilities starting in the low teens & subordinated finance options starting at 8% servicing companies with annual revenues from $500k to $50mm. A companies growth should never be prohibited due to lack of cash flow!
Many clients are now turning to Amerifi looking for more traditional funding options to consolidate higher cost debt.
We currently are working with CPA’s, banks and many other referral partners to secure clients affordable finance options.
We deliver tremendous value to our clients and it shows in our most recent numbers. With over $7.5 million secured and half of January still to come, our team is looking forward to an exciting finish to the month!
Amerifi, LLC continues Fueling America’s Business and is building its brand as America’s choice of trusted advisors when it comes to Alternative Finance!