Growth Capital Advisors

Company Needed Debt Refinancing


After starting a technology focused staffing business, the CEO was able to grow the business within the first two years to a prominent ranking on the INC 500 list in 2019. This was followed by losing their largest client and several months later the onset of the pandemic. Over the next two years their revenue fell by 60% and their funding source was fatigued and was looking to exit the credit. In addition, the company was forced to take on several MCAs (Merchant Cash Advances) to keep the business going until revenues rebounded and cash flow stabilized.


It became apparent from the outset of the engagement; that the existing lender was not suitable for the company going forward. The GCA team also recommended that the company pay off all the MCAs as soon as possible. Although this strategy slowed their revenue growth, the goal was to focus on cash flow rather than top line growth. Once this strategy was put in place GCA worked with management to develop projections using a new financing structure that was shared with qualified lenders.