nFusion Capital provides US$6m ABL facility to support expansion

nFusion Capital has provided a US$6 million asset-based lending (ABL) facility to a Texas-based equipment rental and supply company to support its rapid growth and regional expansion plans.

The company, which has scaled quickly since its founding, has built a US$49 million revenue stream in just three years. Its operations include a diverse fleet of rental equipment such as aerial lifts, earthmoving machinery, compaction tools, power and lighting units, UTVs, and attachments. In addition, its supply division offers a wide range of jobsite consumables, including abrasives, fencing, safety gear, rigging, and welding equipment.

The business serves contractors across multiple sectors, including infrastructure, general construction, oil and gas, and other industrial markets.

The company’s previous lender had been unwilling to extend additional credit against its maximum accounts receivable due to its high growth rate, limited credit history, and existing debt levels. The deal was referred to nFusion Capital by an SBA lender, which led to a tailored US$6 million facility designed to meet the company’s working capital needs.

Brice Reid, Senior Vice President of Business Development at nFusion Capital, said the company’s rapid expansion required a flexible funding solution:

“The company has good financial reporting, strong debtors and well-managed accounts receivable, but banks are often reluctant to support young businesses growing at this pace. nFusion Capital has more flexibility, fewer covenants, and fewer credit boxes to check.”