$3,000,000 Asset-Based Loan Participation for Technology-Enabled Recycler

THE SITUATION
A technology-enabled recycler experienced a pivotal moment when it secured an expanded contract that significantly increased its operational scale. While the contract represented a major growth opportunity, it also introduced a substantial challenge: the company needed to more than double its working capital requirements to support increased volumes, handle upfront costs, and maintain smooth day-to-day operations. Due to the high customer concentration and venture background of the business, traditional bank financing was insufficient to meet the magnitude of capital needed, putting execution of the contract at risk.

THE LEADERSHIP
The recycling business had a multi-year satisfactory relationship with a non-bank ABL lender in the Southeast. Due to the size of both the account debtor and the client, the non-bank ABL lender needed a participant for the line increase. Ideally one that could bring more than just the $3MM of capital needed. Advantage was chosen because of their geography, capitalization and positive past relationship with the current senior lender. This familiarity allowed for open communication and rapid alignment in support of the client.

THE SOLUTION
To support the company’s expansion, Advantage partnered with the current lender on a facility line increase from $3MM to $7MM. Together, the two ABL lenders have provided the flexibility and scale necessary to support the contract while preserving the company’s liquidity and operational stability. Currently, the business is successfully executing on the new contract, and a line increase from $7MM to $9MM is under review.