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Success Story - Refinancing a Business

Providing a CFO to quickly refinance working capital needs

Superior CFO Advisory services for successful accounting and finance solutions

Partners in a small construction company had split and the remaining owner needed assistance in managing the financial aspects of the business. He had committed to two large projects and was under time pressure to gain access to sufficient working capital to perform the contracts. Aventine Hill was recommended to the owner by one of his new investors.

OUR SOLUTION

We provided a CFO Advisory Partner who was experienced in the industry and in positioning small companies for access to financing. An initial assessment of the bookkeeping and balance sheet was performed to understand how the business was functioning and what assets would be available to support financing. The new contracts were reviewed to determine what level of working capital would be required.

It was judged that the company would not qualify for conventional bank financing. There was a factoring arrangement in place that was expensive and not easy to expand to meet the requirements of the new contracts. Our CFO Advisor recommended seeking an alternative factoring arrangement.

With an extensive network of financing sources, the CFO Advisor quickly met with multiple firms who could provide competitive proposals. The criteria used to make the decision included more than just the financing limits and pricing. Reviewing which firms would be easiest to work with was critical because the company did not have a sophisticated accounting team able to prepare complex financial reporting.

The CFO Advisor recommended a new factoring arrangement to the owner for final decision. Then, under time pressure because of the impending projects, coordinated the activities necessary to close the financing transaction.

RESULTS

The new factoring arrangement was put in place in time to support the new projects. The financing is materially less expensive than the prior arrangement, increasing the profitability of the projects. Thanks to Aventine Hill’s CFO Advisor, this company has the financing and accounting in place to grow.  Read more about our CFO Advisory services.


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