nFusion Capital provided a $5 million factoring facility to a Texas-based industrial services contractor. The financing will support working capital needs, reduce delinquent tax liabilities, secure new projects and position the Company for long-term growth. 

The Company provides scaffolding, insulation, fireproofing, painting, coatings and linings, abrasive blasting, and related project management services primarily for oil and gas companies such as Chevron. Customers include Chevron and other large multinational energy companies. They offer a single-source delivery model encompassing planning, procurement, execution, and completion under one point of contact.   

Like many in the industry, the Company faced disruptions after COVID and experienced delayed payments from a key customer. To retain their experienced workforce, they prioritized payroll obligations over remittance of employment taxes, resulting in a multi-million dollar tax liability.

Referred by their tax advisor, the Company turned to nFusion Capital for a flexible solution. nFusion structured a $5 million accounts receivable financing facility to provide immediate working capital. nFusion also advised the Company about partnering with payroll and tax company to help strengthen their accounts receivable management and tax compliance processes.

“At nFusion, we look beyond traditional financial metrics for high-growth companies struggling with challenges that impact their current performance,” said Brice Reid, Senior Vice President, Business Development. “Instead, we focus on the management team's experience, the Company’s customer base and performance, market position, and future potential. With improved back office processes and a reliable long-term partner, the owners can focus less on payroll pressures and more on growth.” 

With the new facility, the Company has reduced its tax lien, taken on new projects, and built a stronger foundation for sustainable growth.