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FWS Provides $3MM Credit Line to FAA Repair Station

October 20, 2016, 07:37 AM
Filed Under: Specialty Industries

FWS Funding announced that it has provided a $3 million credit line to a 19-year old California-based FAA repair station. The company seen both good years and bad, but the last three years had taken a toll on revenue due to the loss of a major customer. The company had $3 million of unencumbered equipment, accounts receivable of $2 million and an $11 million backlog of business with airlines across the globe. The company knew if they could not start processing the backlog, the airlines would soon cancel work orders and the company would never realize a turnaround.

While the company was showing a profit for the trailing six months, the recorded losses for the previous two years made traditional bank borrowing out of the question. The company was one month from closing their doors if it couldn’t monetize the $11 million backlog.

Fortunately, the CFO had worked with FSW in the past and FSW Funding was able to approve the company for a credit line of $3 million enabling the company to leverage the domestic and international accounts receivable to fund inventory to start converting the backlog. The company has been an FSW client for eight months, has been able sustain profitability and will move to a traditional lender in 2017.

FSW Funding was founded in 2001 with the goal of offering flexible and affordable asset-based factoring lines of credit to small businesses. FSW's goal is to look for companies with good management and give them the resources to grow and expand.

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