Irrigation Company Saved Over $62,000 PER MONTH with Value Capital Funding’s Debt Restructuring Program.
Value Capital Funding is pleased to announce the addition of a new debt restructuring client in Florida. The company is an irrigation company, and the owner, through no fault of her own, had cancellation after cancellation on the residential side of their business due to Covid-19. Residential sales were approximately 75% of their total sales. Fortunately, their commercial business division did more than pick up the slack by signing up many new clients. However, during the initial stages of the mandatory COVID shut down several months ago, the company experienced intense cash flow pressure, as clients kept canceling, and suppliers and other bills still needed to be paid. Fast forward to today. Business is picking up and getting back on track, but they are playing cash flow catch up so they’re having a hard time keeping up with their expensive high-cost debt payments. The company had $222,000 in Merchant Cash Advance (MCA) debt on their books, and it was costing them more than $21,750 in weekly payments, or over $94,000/mo., to service this debt. That’s an exceptionally high repayment schedule for a business so negatively impacted by the pandemic.
Within one week of our initial contact with the business owner, the company already has a new repayment schedule that equates to only $6,580/wk, versus the original repayment schedule of $21,750/wk. The math is simple and very compelling. This FL-based irrigation company has relieved their debt repayment pressure by some $15,170 per week or $62,652/month!! Additionally, the repayment term has been stretched out to more than 10 months, versus the shorter period usually associated with most MCA’s.
This business owner said she feels like the weight of the world has been lifted from her shoulders, and that the payment relief they are enjoying is going to help with much-needed holiday bonuses for their crews in the field. Employee morale is up, and the owner has a clear head as she plots her 2021 business plan.
Have you ever had cash flow issues? If so, then you likely know the expression “you can run, but you can’t hide”. This client did not need a new loan which is a good thing as her FICO took a big hit this year, plus her balance sheet was stacked with MCA debt, so she would be unlikely qualify for affordable financing. She simply needed to right-size her existing debt for the new normal revenue environment she/we are all in now. Sound familiar? If you own a business and have a similar story CLICK HERE to see how we can help you.