$5,000,000 Factoring Facility for an IT Solutions Government Contractor

THE SITUATION
The veteran-owned client experienced an unexpected bank exit after a year of financial disruption driven by a temporary government shutdown. Although the shutdown was non-recurring, the resulting volatility created covenant pressure that led the bank to step away despite the underlying strength of the business. This left the company needing a new capital partner that could look beyond short-term disruption and support its long-term trajectory.

THE LEADERSHIP
The business is owned and operated by a team of military veterans. With over a decade of industry experience, they have earned the trust of a broad range of government agencies, including the VA, DOL, Army, Air Force, DHHS, and the State Department, among others. The owners take pride in building the company on military values, with a strong commitment to making their clients’ mission their own.

THE SOLUTION
Advantage refinanced the existing bank debt with a customized facility structured around forward-looking financial covenants. This approach accounted for normalized operations and future performance rather than backward-looking metrics impacted by the shutdown. The solution provided stability, flexibility, and a capital structure better aligned with the company’s operating reality. With improved liquidity and covenant flexibility, the business now has reliable access to capital to support ongoing operations and future growth initiatives.