After three straight years of losses, this provider of special-purpose computers for kiosks and digital signage was not bankable. However, Marble Bridge Funding Group refused to linger at the kiosk — and instead gave the green light to growth by:
Stepping in with funding to fill large orders in the company’s pipeline;
Accelerating cash flow to pay vendors faster; and
Sparking nearly 20% Compound Annual Growth Rate over three years
Once this turnaround started, recording 5x growth and sustained profitability, the company graduated to bank financing. Now the signs are all there for the company to become a worldwide leader in its sector.
This VC-backed Commercial Building Power Management Software Provider came to us with seemingly conflicting needs: the company needed cash for expansion — but it did not want to inflict major dilution on existing shareholders. We quickly built three columns of financial strength by:
Enlisting a trusted venture debt lender.
Maximizing cash flow by professionalizing the company’s A/R management.
Implementing a customized Marble Bridge Line of Credit that allowed a manageable scaling down of borrowing from 125% to 85% of A/R over six months.
The company went on to achieve impressive growth for the next year. Marble Bridge itself then paid off the venture debt lender and directly provided funding for an additional year so the company could complete a $7.5M equity raise for its next phase of growth — on its own timetable and with minimal dilution. We continue to be actively engaged with the company.
The “clean” in clean-tech does not always extend to the balance sheet. At least the bank for this environmental testing and consulting company didn’t think so. The company came to us after its bank said it was breaking its facility covenants — despite the fact that it was profitable, with a bursting new-business pipeline to serve. Enter Marble Bridge, which ensured that the company could found its growth by:
Completing a transaction within three days to fund payroll.
Financing the company and fueling a 40% growth in revenue in eight months.
Enabling an acquisition at a quantum leap in valuation — well into the mid-seven figures.
Marble Bridge was able to do what the bank could not: provide growth capital despite covenant issues. The growth enabled a trade sale to a large environmental consulting firm at a very significant premium — and allowed the founder to retire very, very comfortably.
A California company had built a healthy, $5M-revenue business providing psychiatric staff to the State Prison System. Its bank, however, had concerns about customer concentration — even though its client was the State — and denied the company an adequate line of credit. The situation became dire when the first of a five-year series of state budget crises intermittently stretched a 30-day payment cycle to 120 days. Faced with the prospect of losing the state business, the company appealed to Marble Bridge, which quickly saved the contract by:
Funding payroll so the company could manage the 120-day payment cycle.
Enacting a trigger mechanism over the next five years to provide a similar funding solution every time a budget crisis caused another 120-payment cycle.
Providing strategic counsel throughout the turmoil, enabling the company to achieve an 8X increase in annual revenue despite the state’s five-year rolling budget crisis.
Thanks to the financial and strategic assistance from Marble Bridge, the staffing company emerged from the five-year state-budget ordeal having ramped its annualized revenue to $40M from $5M.
When one door closes, another opens, as the saying goes. Without a $1.3M payment, though, a bank was ready to close the door on one of the market’s most advanced providers of recycled materials for door frames, mouldings and jambs. Despite the company’s pronounced customer concentration — about three-quarters of its business was with one large customer — Marble Bridge recognized immediately that the company had a healthy business pipeline. We swiftly prevented the situation from becoming unhinged by:
Making certain that the $1.3M payment was made on time.
Funding the company directly for an entire year to spark 66% annualized revenue growth — and qualify it for new bank financing.
Combining pre-billings/shipments and A/R in a designed financing package that gave the company optimal flexibility.
Marble Bridge’s ability to look past the short-term issues of payment deadlines, customer concentration made sure that this client was able to take advantage of a window of opportunity without having a door slammed in its face.
Late-paying customers turned this unprofitable $10M-revenue software company into a late payer itself, most painfully evidenced by the costly late fees imposed by the mezzanine finance company that had provided a sorely needed short-term loan. Shunned by banks, the company turned to Marble Bridge, which wasted no time in:
Paying off the short-term loan — and putting an end to stinging late fees.
Providing $1M in funding to stabilize cash flow and permitting the company to refocus on its strategic goals.
Allowing the no-longer-distracted management to complete a $30M software IP sale.
The proceeds provided the resources for new product development — and a new phase of internally financed corporate growth.
This designer and manufacturer of precision semiconductor products showed us an expanding pipeline of new business. But its bank said the company needed a redesign of its financial profile of operating losses, extreme customer concentration, no LOC and a CRE loan with a blanket lien on all assets. Marble Bridge implemented a financial redesign by:
Working with the bank to put in place an Intercreditor agreement for an A/R revolver, allowing the bank to stay in first lien position on certain assets.
Working with the company to lower its cost line based on monthly volume which, in turn, made growth financing not just feasible but attractive.
Implementing a broadened solution utilizing both Marble Bridge’s traditional A/R lending and venture/uncollateralized lending products to fund further growth.
Marble Bridge continues to design and supply a new financial profile the way the company designs and supplies new technology products. The result is substantial growth — in revenue, profitability and valuation.
Even an esteemed manufacturer of components for satellites can have trouble achieving lift-off. This space tech provider to the U.S. government’s leading aerospace contractors was facing a 14-day countdown before a $1.8M payment deadline with its bank. Over two years, Marble Bridge built second-, third- and fourth-stage booster rockets to make sure the company blasted through the stratosphere by:
Stepping in to ensure the bank’s 14-day payment deadline was met.
Funding the company directly for six months to enable 80% annual revenue growth — and the approval of new bank financing.
Repeating the direct-funding process 18 months later, this time in a strategic initiative with an equipment lender.
Marble Bridge then added a customized Purchase Order / Over Advance financing solution to put the company into an even higher orbit. The initiative led to a strategic partnership that resulted in the company rocketing to a $60M valuation — only two years after it was about to be grounded. test edit
After 60 years and three generations as a family business, a $3M-revenue big-box retail display manufacturer found itself struggling through a third straight year of losses. Then, overnight, a large grocery chain changed everything with a $15M order — with a six-month delivery deadline. Unwelcome at the bank, the company turned to Marble Bridge, which put on a display of its own by:
Funding the fulfillment of the $15-million order.
Improving management of cash flow and enabling more timely vendor payments.
Designing internal controls that sliced two-thirds off of a 120-day debtor collection cycle.
The result was on-time delivery of the game-changing order — and the company recording a profit of several million dollars.
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Senior Vice President Sales
Senior Vice President