Fueling growth: $1.38M in working capital financing secured for a mining services company in high-growth mode

Total credit facilities: $1,380,000

Lender: Chartered bank

Location: Kamloops

Goals achieved: Additional leverage, Greater flexibility

A previous client recently referred a potential opportunity to Lakepoint Capital. A mining services company based out of Kamloops was in the midst of a high-growth period and had additional growth opportunities in front of them. Annual revenue had tripled over a two year period and were forecasted to continue at that pace, at least for the immediate term.

High revenue growth often puts pressure on working capital, and this situation was no different, especially in an industry that typically sees extended payment terms to begin with. Pressured working capital requires more attention to manage, which in turn can take an owner's attention away from revenue-generating activities.

Before engaging Lakepoint, the client was managing working capital with a woefully undersized line of credit that made sense three years ago, but not now, and an assortment of credit cards and higher-cost BDC working capital loans.

Lakepoint collected preliminary information, performed a thorough risk analysis of the business, and presented a comprehensive Request for Financing ("RFF") to multiple lenders simultaneously. Lender interest was palpable, and we were able to secure an operating line that was 3x larger than before, a larger corporate credit card limit, and a bank/banker that was well-equipped to support additional growth in the future.

Is your business growing faster than your financing can keep up? Let Lakepoint Capital structure the right facilities to free up your working capital and position you for sustainable expansion. Contact us today to discuss how we can help.