QualiFi, Delivers $500,000 In Growth Capital To The Healthcare Industry!

John J. Crawford III Senior Funding manager of QualiFi - Borrow I Build I Believe needed to over come several obstacles to assist a 4 year young rapid growing medical laboratory needing a half million dollars to keep pace with its rapid growth.

The company rose to the top in 4 years to be an industry leader providing, a best in class testing methodology and high quality imaging and lab services in light speed.

The business model is built on quality, speed and efficiency and prides itself on services 24 hours 7 days a week 365 days a year!

In 2019 it's first year in business, annual sales topped at just shy of $300k. Today they are producing over $15 million in annual revenues doubling from $7 mil just a year ago.

It is typical when companies experience rapid growth of this proportion to burn all of it's immediate cash reserves rather quickly. Many times if the company is not property capitalized it can be detrimental to the point of lets say, "Growing Broke"

The company came to QualiFi already with some debt on the books, 2 lines of credit that were maxed and needing $500,000 in a third subordinate position and rather fast.

The challenges we were faced with in this file, was not only showing a $1 mil+ loss on the year to date 2023 financials but the ownership structure was highly complex and somewhat messy, let me elaborate...

The Company was an LLC and owned 100% by a Corporation (not so bad) now throw in that the corporation was owned by a family trust.

The family trust had 2 partners along with their wives on the trust and all 25% partners.

If that wasn't enough to make most underwriter's close the books & throw in the towel on this file, now throw in one recent partner buyout and 3 ownership changes in the last 3 years and one most recently, just 3 weeks ago.

John Crawford and Team QualiFi went to work on this deal diving into diligence for 4 days not only to find a well established lender in it's network that understands how to work around complex ownership structures like this and also one that can look "under the hood" at the $1 mil loss to understand what is causing the loss and then being able to mitigate risk by looking at the upside and all the new facilities they were signing on so quickly.

It takes a well established very experienced underwriting team and lender to spend the time and resources necessary understanding the entire business model, getting to know the CEO & the management team and not just checking off boxes and instantly declining like most banks today.

QualiFi prides ourselves on putting affordable structured financing in place to solve issues many business owners are facing daily and being able to get the deal done when others can not!

In many cases we can make the impossible possible!

This $500,000 will help support more than 100 new facilities they recently signed on and more importantly support cash flow as the company builds back into profitability in 2024.

We look forward to helping them into a much larger credit facility in 2024 and consolidating all debt into one large line of credit facility or 5-12 year term loan.

Visit goQualiFi.com to see how Qualifi can help your business meet it's goals!