Industry: Telecommunications: Construction & Infrastructure Call Centers
Situation: The Company was looking for working capital support to manage their turnaround including options such as Accounts Receivable Loans and Purchase Order Financing.
The Call Center giant was formed with two subsidiaries through the acquisition of two separate businesses. One subsidiary operates call centers in the United States and Canada, deriving revenues from outbound marketing calls and inbound customer service and help desk calls. The other provides installation and construction services to the cable industry throughout the United States.
The Deal: Coral Capital Solutions replaced the existing Accounts Receivable Lender, added PO financing with letters of credit, and negotiated inter-creditor agreements with two separate banks to maintain term loan and inventory financing for the client, thereby adding substantially to working capital availability.
The Result: The unique combination of accounts receivable financing and PO financing worked out. Now that they can source from overseas suppliers that require Letters of Credit, the Company has been able to expand its product line. It is now competing for larger orders with nationwide retailers.