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Andy Cagle
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ORLANDO, Fla. (March 26, 2024) – LSQ, a leading provider of working capital finance and payments solutions, recently originated twin $2 million invoice finance facilities for sister companies serving the electric utility industry.
South Carolina-based Powerhouse Resources provides staffing solutions for traditional power-generation facilities, while Florida-based Outage Solutions serves nuclear energy facilities, primarily as service experts for pumps and rotating equipment. Since the two companies began the merger process in January, their client base has grown exponentially, necessitating the need for additional capital to expand their service offerings.
“Traditionally, the way the company has grown has been through self funding and private investment, which can be taxing and expensive” said President and CEO Joe Klecha. “We started talking to a banking partner who mentioned LSQ and were able to create a funding solution quickly.”
According to Klecha, he anticipates more than 100-percent revenue growth in the next 12 months, which, while exciting for the companies’ prospects, presents challenges.
“With our expansion plans, we are going to see a growth in payroll and operational expenses,” he said, “and big companies have slower payment terms that can put the squeeze on working capital.
“There is no way for us to do this without a tool like this (an LSQ invoice finance facility) in our toolbox.”
Both Powerhouse and Outage funded within 30 days of Klecha’s initial engagement with LSQ.
“Joe and team have been amazing to work with,” said LSQ Senior Business Development Officer Kyle Rich. “They were organized and accessible to make the underwriting process a breeze, which, in the end, allowed us to get the facility in place quickly. Kudos to them and kudos to our underwriting team for getting this done in time to serve the working capital needs.”
“I am very pleased that our banking partners recognized LSQ’s ability to help their client when they were not able to provide a working capital solution,” said Chris Collins, LSQ Sr. Regional Vice President. “Kyle and the LSQ team responded quickly to provide a solution so that the banker was able to maintain their treasury relationship. These situations are exactly why we feel LSQ is a premier partner to the banking community.”
For Klecha, the experience with LSQ has gone a long way to cement the relationship.
“Kyle, (Director of Underwriting) Tom Fevola, and our account representative Emily (Lebron), have been tremendous to work with,” he said. “We have people in our company already seeing the value enough to where they’re out there meeting people and recommending LSQ.
“Our experience has been nothing but a blessing to this point.”
LSQ offers (and partners on) myriad financing options, including accounts receivable, inventory, and supply chain finance in facility sizes ranging from $250,000 to $200 million. We can help companies of all sizes and stages solve for high growth, challenged credits, tripped covenants, high debtor concentrations and bankruptcies.
About LSQ | lsq.com
LSQ is a market leader and pioneer in working capital finance and payments solutions. For nearly 30 years, LSQ has leveraged innovative technology, credit and risk expertise, and proprietary data that empowers thousands of businesses to optimize their working capital, automate and accelerate payments, manage collections, and mitigate risk. Every year, we accelerate billions of dollars in payments to businesses and their suppliers through our LSQ FastTrack platform to help them obtain the funds they need to grow and thrive. LSQ is headquartered in Orlando, Florida. Learn more at www.lsq.com.
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