Working Capital

The Company:

Software as a service platform that provides data management solutions to insurance agencies, government agencies, hospitals and other healthcare organizations. The Company’s service offering includes enrollment and network management, medical credential verification, continuous monitoring of provider data, and claims screening.

The Financing Solution:

The Company was in the process of raising a large strategic equity round and was seeking interim (“bridge”) capital to support its continued growth as well as general working capital cushion to alleviate equity closing pressure.  The Company had an existing senior term loan with an affiliate of funds managed by Fortress Investment Group (“Fortress”) secured by the Company’s intellectual property and all other business assets so traditional working capital solutions such as asset based lending/factoring were not an option due to seniority issues as well as insufficient borrowing base availability.  Additionally, given the anticipated time horizon to a large equity raise, the Company preferred non-dilutive capital versus convertible note/shareholder equity options.

The Solution:

Super G was able to work closely with Fortress to provide a $1.5 million structured working capital solution by carving out specific contracts as collateral and lending against the annual value of those contracts (i.e. Super G was senior secured on specific contracts and second lien on all other assets). This allowed the Company to have much more access to cash immediately then they could with a traditional asset based lender. This unique structure combined with non-dilutive capital were the key points of difference when the Company made its bridge financing decision. In addition to the contract collateral, the key underwriting criteria for this deal was the Company’s unique software offering, the management team, customer stickiness, and ability to service Super G’s debt through operational cash flow in the event an equity raise does not occur.

For more information on Fortress Investment Group, please contact:

Yoni Shtein
Vice President
yshtein@fortress.com
415-284-7415
www.fortress.com

 

The Company:
Company provides lease crew services and equipment rentals to leading exploration and production companies in South and West Texas.

The Financing Situation:
The Company was seeking growth capital in addition to its existing asset based financing. The Company had equipment financing in place as well as a flexible factoring arrangement with FarWest Capital and could not unlock additional availability from its existing collateral. The Company needed to raise equity or find an airball (stretch piece) financing solution based on cash flow and enterprise value.

The Solution:
Super G was able to quickly get comfortable with the Company’s growth plans and management team to close on a multi-tranche growth capital facility that solved the Company’s immediate and future capital needs. Super G worked closely with the Company’s existing lender, FarWest Capital, to finalize an intercreditor agreement and fund the Company quickly.

For more information on FarWest, please contact:

Jason Lippman
Executive Vice President
jason@farwestcap.com
512-527-1126
www.farwestcapital.com

Super G Provides $1,250,000 Seasonal Working Capital Loan to Education Software Provider

The Company:

Delivered in a SaaS model, the Company provides core educational programs (primarily math & science) for middle and high school students.

The Financing Situation:

The Company is a seasonal business from a selling and cash collection perspective as the Company’s customers (school districts) have specific buying patterns and the Company collects lump-sum annual payments. The Company’s senior lender, Bridge Bank, provides an asset based facility and thus there is a limited availability during the low season (i.e. limited AR to leverage) for working capital cushion. The Company historically solved seasonal working capital shortfalls with venture capital/convertible notes and was seeking non-dilutive capital as an alternative.

The Solution:

Super G was able to quickly get comfortable with the Company’s SaaS model, seasonality, growth plans, and management team to close a $1,250,000 loan that solved the Company’s seasonal working capital need. Super G’s amortization schedule was structured around the Company’s seasonal cash flow – light amortization in low cash collection periods and increased amortization during the busy season. Super G worked closely with the Company’s existing lender, Bridge Bank, to finalize an intercreditor agreement and fund the Company within 3 weeks.

For more information on Bridge Bank, please contact:

Chris Hill

SVP Regional Director

Capital Finance

christopher.hill@bridgebank.com 

408-556-8635 p

408-660-5355 m

 

The Company:

Provider of nationwide parcel logistics services (transportation) and parcel shipping & management software. The Company’s services and software help customers manage an control their business, drastically improve delivery and lower transportation and postage cost.

The Financing Situation:

The Company’s software side of the business won a new large contract and needed upfront working capital to support the implementation costs associated with the contract. Factoring was not an option for the Company due to the milestone nature of the billing.

The Solution:

Super G was able to quickly get comfortable with the software business, the new contract structure, and management team to close a $750,000 loan to solve the Company’s working capital needs. Super G worked closely with the Company’s existing factor, Eagle Business Credit, to finalize an intercreditor agreement and fund the company in 2 weeks.

For more information on Eagle Business Credit, LLC, click here or contact:

Ian Varley

CEO

ivanvarley@eaglebusinesscredit.com

The Company:
A leading provider of IT consulting and cloud collaboration solutions to the government, Fortune 500 companies, and medium size businesses.

The Financing Situation:
The Company engaged an investment bank to raise institutional mezzanine capital to finance its next phase of growth. During this process the Company had a short-term working capital need to fulfill a backlog of new service contracts and to stay current with existing vendors. The Company needed incremental capital beyond its borrowing base since new service contracts require upfront capex before the Company can start invoicing and generating accounts receivable.

The Solution:
Super G underwrote and closed a 2nd lien term loan within weeks to meet the Company’s timing needs. Super G provided a structured solution with a custom repayment schedule in partnership with the Company’s senior ABL lender, CapitalSource.  CapitalSource was a value added partner in terms of their service and speed, working with all parties to ensure timely execution and a successful closing.

For more information on Capital Source, please contact:
Patrick Brennan
Senior Vice President | Southern California
pbrennan@capitalsource.com

Gretchen Wile
Senior Vice President | Northern California and Pacific Northwest
gwile@capitalsource.com

About Us:
Super G Funding is an alternative lender with over $100MM in committed capital specializing in residual and cash flow loans.  Our mission is to fill the credit void in the lower middle market by providing non-dilutive, senior and subordinated debt solutions to businesses in need of financing for working capital, growth capital, acquisition capital, or special situation financing.  We lend up to $5MM per transaction in the form of a fully-amortizing cash flow term loan with a 6-36 month term (pricing contingent on credit profile).  We are a small, but nimble team and highly responsive. We have over 100+ borrowers around the country and are able to give quick responses and close deals rapidly.

The Company:
A sponsor-backed company that formulates and distributes impression fragrances.

The Financing Situation:
The Company recently transitioned from a commercial bank lender to an asset based lender, Bibby Financial Services.  The Company required a seasonal-over-advance to build inventory and maintain vendor relationships in order to fulfill anticipated sales order growth for the holiday season.

The Solution:
Super G was able to get comfortable with the Company’s operating history, 2016 growth initiatives, management team and seasonal cash flow.  Underwriting and approval process of the 2nd lien loan took place quickly allowing Bibby to reduce its over-advance position and providing the Company with enough liquidity to meet immediate seasonal production demands.  Super G’s covenant light loan documents, cooperative process with existing senior lenders and rapid decision making allowed for an efficient and seamless closing.

The Company:

A family owned and operated waste management company providing solid waste hauling and recycling services to residential and commercial customers throughout Southern California.

The Financing Situation:

The Company was awarded an exclusive license to service a highly sought after municipality and needed immediate financing to fund upfront working capital. At the same time, the Company was in technical default with its senior lender and had other outstanding liabilities that required immediate payoff.

The Solution:

Super G was able to get comfortable with the Company’s financing situation because of the long history of the business, the cash flows associated with the new contract, and the character of the entrepreneur.  Super G’s 2nd lien loan allowed the Company to finance its new municipality route, which was expected to generate significant revenue, remain on good terms with its senior lender and normalize working capital.

The Company:

A private equity backed candle manufacturer in the Southwest with distribution throughout the United States and Canada.  They offer a variety of candle types, fragrances, and accessories.

The Financing Situation:

Due to growth the Company had a larger than usual seasonal need during its low working capital cycle in the summer.  The Company’s bank could not increase availability fast enough for production going into the fall busy season.  The Company’s business model is such that it does not generate accounts receivable so alternative lenders such as factors and asset based lenders were not an option for additional working capital and even if there were assets available to lend against, they would not be able to provide enough availability for production due to the heavy seasonality of the business.

The Solution:

Super G was able to get comfortable with the Company’s business model, management team, and heavy seasonality and structured a $2MM tailored solution that matched the Company’s cash flows.  To facilitate a quick closing, Super G purchased the existing note from the senior lender and upsized the loan amount to provide additional working capital for production going into the fall busy season.  This solution provided the Company with flexible capital quickly and positioned the Company to generate a strong fall/holiday season.

MobileCause Positions Itself for Additional Product Advancement

Newport Beach, CA (July 21, 2015) – Super G Funding (‘Super G”), announced a significant investment in MobileCause, a California company, and leader in mobile fundraising and communication for nonprofits. MobileCause provides a cloud based online fundraising and communication platform for nonprofit organizations enabling them to raise more money at a lower cost.

Super G’s software division, SaaS Funding, provides recurring revenue software companies such as MobileCause with growth capital from $100,000 – $5 million. Super G is led by entrepreneur and payments veteran, Darrin Ginsberg. “MobileCause is extremely well-positioned for the rapid growth of mobile giving and a terrific match for our SaaS Funding product,” said Ginsberg.

“This investment will allow MobileCause to advance product development and accelerate sales and marketing” said Sean MacNeill, MobileCause CEO. “We are excited to be working with the Super G team and welcome the deep payments knowledge and relationships they bring to our mobile efforts.”

MobileCause provides a suite of products for a new generation of giving. Designed to help organizations gain donors, increase recurring gifts and engage supporters, products include Crowdfunding for nonprofits, merchant and payment services, text to donate and mobile alerts. National non-profit clients include: United Way, the Salvation Army, Boys and Girls Club of America and the American Heart Association.

About MobileCause
MobileCause provides cloud based online fundraising and communication software for nonprofit organizations enabling them to raise more money at a lower cost. Each powerful solution is designed to mobilize networks of volunteers, donors and staff while making it easy for people to give and stay connected from any device. Our suite of products: crowdfunding for nonprofits, comprehensive online giving, dynamic event fundraising, text to donate keywords, mobile marketing and smart data records, is designed for a new generation of giving for mobile, online and social. Customers can be up and running in hours with no technical skills required. MobileCause provides turnkey merchant and payment services at a simple flat rate that includes a specialized mobile payment app for nonprofits. Each plan includes dedicated strategy support from fundraising experts. Featured clients include United Way, The Salvation Army, American Heart Association, University of Southern California, Habitat for Humanity and many more.

The Company:

A manufacturer of various Hispanic themed ice creams, frozen yogurt, fresh fruit bars and other icy treats distributed throughout major big box and supermarket chains.

The Financing Situation:

The Company was in technical default with its senior lender and had an immediate seasonal over-advance capital need to finance raw materials for its summer busy season.

The Solution:

The senior lender assigned its note to Super G to facilitate a smooth closing and Super G upsized the loan to provide working capital for the Company’s busy season and position the Company to obtain a new permanent senior lender.  The Super G loan enabled the Company to finance a large seasonal need and to transition to a new senior lender that will provide a revolving facility to support the Company’s continued growth.