Liquidity Shortfall Financing

2022

A healthcare business that paid for services and in turn received reimbursement from insurance was projecting a liquidity crunch.

​

The minimum wage was increased by the state, and there was going to be a minimum 3-month gap between the increase and the subsequent upgrade in reimbursement rates - and even those were not guaranteed.

​

The current bank was unwilling to issue a large line of credit to cover the shortfall.

​

Our team ran a competitive process between banks, credit funds, and factoring firms to find the best solution for the business.

As a result of our process, the business closed on a $20M line of credit with a publicly traded financial institution. This line was negotiated to have a lower interest rate and lighter covenants than the $10M line of credit that was previously in place.