Seasonal Working Capital – Second Lien Loan for Education Software Provider
Super G Provides $1,250,000 Seasonal Working Capital Loan to Education Software Provider
Delivered in a SaaS model, the Company provides core educational programs (primarily math & science) for middle and high school students.
The Financing Situation:
The Company is a seasonal business from a selling and cash collection perspective as the Company’s customers (school districts) have specific buying patterns and the Company collects lump-sum annual payments. The Company’s senior lender, Bridge Bank, provides an asset based facility and thus there is a limited availability during the low season (i.e. limited AR to leverage) for working capital cushion. The Company historically solved seasonal working capital shortfalls with venture capital/convertible notes and was seeking non-dilutive capital as an alternative.
Super G was able to quickly get comfortable with the Company’s SaaS model, seasonality, growth plans, and management team to close a $1,250,000 loan that solved the Company’s seasonal working capital need. Super G’s amortization schedule was structured around the Company’s seasonal cash flow – light amortization in low cash collection periods and increased amortization during the busy season. Super G worked closely with the Company’s existing lender, Bridge Bank, to finalize an intercreditor agreement and fund the Company within 3 weeks.
For more information on Bridge Bank, please contact:
SVP Regional Director