Oil & Gas Industry - April 2016

Brian Jenks

Location: Houston, Texas
Industry: Oil & Gas Industry
Revenue: $300K per month
Line of Credit: $750,000 Ledger Line of Credit
Collateral: All Asset Borrowing Base

The American Dream
The company was startup providing drilling and completion fluids products and services to the oil and gas industry located in Houston, Texas. The company services wells onshore in addition to wells in the Gulf of Mexico. With the recent emphasis on reducing cost and the movement towards ultra-competitive pricing, the company is committed to providing quality and excellence in the oil and gas industry while also adding value through the lowest cost performance for their customers.

The Sterling Way - Financing Opportunity
Sterling was approached by the consultant to help finance acquisition of an oil & gas company that was a spinoff off from a large parent company. That acquisition never materialized but the management team that worked for the subsidiary company saw an opportunity to take advantage of the available market share and requested that Sterling help finance their new company. Sterling flew down to Houston and meet the management team and Sterling performed the due diligence on the receivables and funded shortly thereafter. The initial accounts receivable generated an opening day line of credit balance of $340,000 that has sense grown to over $840,000 dollars in just a few months. Sterling is currently looking to provide inventory financing to help support their continued growth.

Unlike a Bank all relationships with Sterling Commercial Credit are asset based lines of credit with full dominion of funds flowing daily into the lockbox to minimize the cost of borrowing. The asset based lines of credit allows for weekly borrowing and a 52 week relationship with a Sterling Relationship Manager. Sterling prides itself on a relationship based partnership that allows maximum access to working capital for our growing entrepreneur.

Brian Jenks
Founding Partner/Sales Manager