Case Study: Newhouse Project Consulting
BIPOC-owned NPC is a boutique firm that provides organizational management services and has grown tremendously since it was founded in 2015.
>>THE PROBLEM
>>THE SOLUTION
Newhouse Project Consulting was growing very quickly and looking to secure an influx of capital without giving up equity. NPC had been able to grow year-over-year without taking on any debt, aside from one small loan when first starting out. The company was unable to secure financing from their financial institution even though NPC had a long-standing relationship with them so they sought alternative capital from Founders First Capital Partners.
NPC was looking for alternative capital:
- To cover a large, slow-paying customer.
- To invest in business development to diversify the client base.
- To enhance cash flow in the business.
NPC’s accelerated growth necessitated an infusion of cash which Founders First Capital Partners was able to meet quickly. NPC decided to move forward with debt financing with Founders First because both companies were aligned on goals, values and intentions.
Since Founders First invested via a term loan in the firm, NPC is on the path to continue its accelerated growth track. The firm is projecting 2023 revenues to be two times the previous year. The term loan from Founders First has resulted in:
Improved liquidity
Enhanced business development
Diversified client base
WHAT THIS MEANS FOR YOU
Term loans are a good fit for your consulting business if it meets the following:
- Profitable, break-even or on the clear path to profitability
- Recurring or predictable revenues or repeatable customer contracts
- Seeking $50,000 to $2 million in growth capital
