US$6m ABL line supercharges electrical contractor’s growth

nFusion Capital has announced the successful funding of a US$6 million asset-based lending (ABL) facility to an established electrical contracting company serving the Pacific Northwest region in the US. The financing will provide the company with the working capital needed to support its continued expansion and growing project pipeline.

Founded in 2005 in Washington state, the electrical contractor provides a full range of services for commercial, residential, industrial, and custom electrical projects. Despite strong profitability and consistent growth, the company required additional liquidity to meet increasing project demand.

Their existing lender, however, had recently chosen to reduce exposure to the construction sector and requested repayment of the company’s US$4 million line of credit within a short period. While searching for a new financing partner, a local bank -interested in the company’s depository business but unable to meet its lending requirements – referred them to Curtis Powell, Senior Vice President of Business Development at nFusion Capital, and a specialist in construction finance.

Drawing on its deep industry expertise and flexible funding approach, nFusion Capital structured and rapidly funded a customised ABL facility secured by receivables and inventory. The solution not only met the company’s immediate liquidity needs but also enabled them to repay their previous lender on time.

The new financing provided the business with stability and confidence to pursue additional projects, while positioning it for a future transition to a traditional bank line of credit.

“The community bank won the Company’s depository relationship, the Company received the additional funding they needed to grow, the previous lender was satisfied, and we earned a new lending relationship.”