Republic Business Credit (RBC), a national commercial finance company offering working capital financing, provided a $5 million factoring facility to support the growth of a fleet management services company. The company was recently acquired by a private equity sponsor that partnered with RBC for its roll-up strategy. RBC’s financing will support the company’s growth goals with an option to scale with future add-on acquisitions.
A trusted advisor connected the company and private equity sponsor with RBC, which structured a solution that met immediate financing needs and included a planned transition to a conventional asset-based lending facility once the acquisition fully resolves. The structure provides for an elevated advance on accounts receivable without any financial covenants or guarantees.
“Our reputation is built on trust and an unwavering commitment to our clients’ success,” Jason Carmona, executive vice president, Western regional manager for RBC, said. “We’ve forged strong relationships with industry partners who know we always act in our clients’ best interests, and that trust was pivotal in closing this transaction.”
The sponsor expects to seek add-on acquisitions to create value and strengthen its market position.
“Our core mission is to provide confident solutions that align with our clients’ specific needs,” Matthew Begley, chief operating officer at RBC, said. “In this case, we have delivered a solution that positions the company for long-term growth and continued evolution.”
