A mid-sized healthcare staffing company found itself on the verge of collapse after the IRS placed a $2 million federal tax lien on the business. Once the tax lien was filed, the company's existing lender immediately notified them of their intent to discontinue financing within 30 days. This created an immediate crisis: the company had ongoing commercial contracts to fulfill and a workforce of over 200 employees who depended on timely payroll. With the condition of a federal tax lien, the business was paralyzed, unable to fund daily operations or meet contractual obligations.
The company approached TFN/Action on a Thursday evening in a state of emergency. Commercial lenders had already walked away, their bank refused further support, and payroll deadlines were looming. Without a rapid funding solution, the business would have been forced to shut down operations within days, leaving hundreds of workers without income. The IRS lien not only threatened their access to capital - it jeopardized their entire ability to operate, serve clients, and maintain long-term commercial relationships.
TFN/Action immediately reviewed the company's backlog, receivables, and contract performance history. Despite the lien and lending freeze, the business had strong commercial demand and substantial receivables in the pipeline. Leveraging that backlog, TFN/Action negotiated directly with the IRS for a lien subordination, persuading the agency to temporarily step back and allow TFN/Action to take first position on the receivables up to a defined limit.
Once the IRS granted subordination, TFN/Action stepped in as the primary receivables financer. They established a structure where receivables were funded continuously, enabling payroll and contract delivery to continue uninterrupted. At the same time, TFN/Action created an escrow-based repayment plan, setting aside a portion of funded receivables each month to pay down the IRS balance. Working through the weekend, including heavy involvement from senior staff - the team executed the entire structure within days, restoring liquidity and preventing operational shutdown.
TFN/Action's intervention saved the healthcare organization from immediate collapse. Operations continued without interruption, employees continued receiving payroll, and the company avoided the devastating consequences of defaulting on commercial contracts. Over time, the IRS repayment plan brought the business back into compliance, and once the company stabilized, TFN/Action was able to help transition them to a long-term lender better suited to their ongoing needs.
Even years later, the company remains in business - a direct result of TFN/Action's willingness to take on a case no traditional lender would consider. By combining receivables financing, IRS negotiation, and operational triage, TFN/Action preserved over 200 jobs, protected the company's commercial client relationships, and turned an insurmountable financial crisis into a stable, manageable recovery.
A healthcare staffing company with over 200 employees faced shutdown after the IRS filed a $2 million tax lien, causing their bank to terminate financing immediately. In urgent need of payroll funding and contract support, the business turned to TFN/Action.
Leveraging strong receivables and commercial backlog, TFN/Action negotiated an IRS lien subordination, secured first position over receivables, and restored funding within days. They implemented an escrow-based repayment system that allowed the company to repay the IRS while continuing daily operations.
As a result, the business avoided collapse, continued fulfilling contracts, protected more than 200 jobs, and eventually transitioned back to a traditional lender. TFN/Action's rapid intervention saved the business and preserved long-term commercial viability.
TFN/Action was brought into a crisis involving a mid-sized government services contractor with 150–160 employees and roughly $20 million in annual revenue. The business was experiencing a severe lack of liquidity driven by mismanaged cash flow and an overextended line of credit with its incumbent bank. At the time TFN/Action became involved, the contractor's $3 million credit line had a $2.9 million outstanding balance, while the accounts receivable totaled only $1.8 million. The bank made it clear they were preparing to shut the company down, which would have left over 160 families without income and forced the bank to absorb a multimillion-dollar loss. Traditional options had dwindled, turnaround specialists had already been brought in, and the remaining paths for survival were evaporating.
What the bank failed to recognize was that nearly half of the receivables - about $900,000 - belonged to subcontractors and could not legally or ethically be used to improve the company's liquidity position. This meant the bank's assumption that they could collect $1.8 million was fundamentally flawed; shutting the company down would actually widen their loss. Meanwhile, the business itself was days away from failing to meet payroll obligations, which would have immediately halted operations and jeopardized active government contracts. The situation demanded an urgent, strategic intervention that could protect workers, stabilize cash flow, correct the receivables structure, and prevent a total shutdown.
TFN/Action was brought in on the recommendation of the turnaround specialist, who knew from experience that TFN/Action excelled in restructuring distressed contractor finances without the delays of court-regulated processes. Upon review, TFN/Action immediately addressed the subcontractor receivables issue, presenting the bank with a corrected view of the true recoverable amount. By demonstrating that the bank stood to lose closer to $2 million - not $1.1 million - the team successfully shifted the negotiation dynamic. With the bank now willing to consider alternatives, TFN/Action proposed a restructuring strategy anchored in payroll-critical receivables financing.
TFN/Action advanced 90% of the contractor's validated receivables - approximately $900,000—and deposited those funds directly with the bank. In exchange, TFN/Action secured first-priority position over the receivables, allowing them to take over ongoing financing of the business's operations, including payroll. The balance of the bank's loan exposure was converted into a term loan and spread over three to four years, with funds escrowed monthly to ensure stability. With this structure in place, TFN/Action continued to finance the contractor's receivables on a rolling basis, creating predictable liquidity and giving the business enough runway to correct its internal cash-management issues and stabilize operations.
The outcome was transformative. TFN/Action prevented the shutdown of a $20 million-per-year organization and safeguarded the jobs and incomes of 160 families. Payroll was met consistently and on time, preserving workforce continuity and preventing contract disruption. The bank avoided a significantly larger loss and benefited from a guaranteed repayment plan rather than a forced liquidation. For the client, TFN/Action's intervention provided critical breathing room, reinstated financial credibility, and restored operational stability. What had been a near-certain collapse became a manageable recovery.
Most importantly, the company survived - and continues operating to this day. The restructuring laid the foundation for healthier financial management through proper handling of subcontractor obligations, disciplined receivables financing, and reliable payroll coverage. By stepping in when traditional banking refused to support the business, TFN/Action demonstrated how sophisticated, opportunity-based payroll funding can rescue a contractor not just from a temporary cash-flow crisis, but from existential danger. The contractor ultimately returned to stable growth, retaining contracts, preserving its reputation, and continuing to serve clients without interruption.
A mid-sized government services contractor with 160 employees was on the brink of collapse after severe liquidity problems left them unable to meet payroll. Their bank planned to shut the business down due to a nearly maxed-out $3 million credit line and only $1.8 million in receivables, half of which belonged to subcontractors and could not be used to support operations. Failing payroll would have immediately halted service delivery and left more than 150 families without income.
TFN/Action intervened at a critical moment. By demonstrating the bank's true exposure and advancing 90% of the viable receivables, TFN/Action secured first position and provided the liquidity needed to meet payroll and stabilize operations. They negotiated a repayment structure with the bank, converted remaining debt into a manageable term loan, and took over receivables financing to keep the company running.
As a result, 160 jobs were saved, a $20 million-per-year contractor avoided shutdown, and the business continues to operate successfully today. TFN/Action's payroll funding solution not only averted a crisis but helped restore long-term financial stability through disciplined cash-flow management and consistent operational support.
A government IT contractor generating $1.2 million annually found itself unable to access the payroll liquidity needed to support two newly awarded contracts. The company had multiple UCC filings - a small bank credit line and two stacked MCA loans- making it impossible to secure additional financing through traditional lenders. Weekly MCA withdrawals were draining their operating account and placing them in a downward financial spiral. Although the company had significant receivables coming in, every lender they approached declined support due to the first-position liens held by the MCA companies and the local bank.
As payroll deadlines approached, the contractor was effectively frozen. Despite having won new work requiring 30 additional employees, they lacked the liquidity to onboard or pay them. The MCA loans, originally taken out for quick cash, had created a long-term trap: high effective rates, weekly auto-debits, and no prepayment flexibility. With multiple lenders blocking the receivables, the company's growth was stalled, its creditworthiness had deteriorated, and its ability to perform its awarded contracts - and maintain client confidence - was in jeopardy.
TFN/Action stepped in and performed a complete receivables and UCC analysis. Their first move was to structure a financial solution that allowed the contractor to buy out both MCA loans and the bank's secured position. By leveraging the company's existing receivables - rather than requiring commercial collateral or credit history - TFN/Action was able to eliminate all three UCCs simultaneously. This cleared the path for TFN/Action to file its own first-position lien, restoring financial control to the contractor.
With lien priority established, TFN/Action extended both a receivables financing line and an accrued revenue line of credit. This dual-structure approach ensured the contractor could immediately draw down liquidity to meet payroll, fund the two new contracts, and stabilize cash flow without predatory terms. In cases where receivables alone aren't enough to clear MCA obligations, TFN/Action often brings in additional safe liquidity sources - owner cash, short-term IRA/SEP withdrawals, or home equity - but in this scenario, receivables were sufficient.
The contractor exited the MCA trap permanently, eliminating high-cost weekly withdrawals and regaining control of its bank account. With first-position receivables financing secured, the company gained the liquidity needed to fulfill both newly awarded contracts requiring 30-person payroll expansion. This not only protected their existing revenue base but also unlocked new growth opportunities that had previously been blocked by MCA debt.
With stable financing in place, the company now operates with predictable cash flow, the confidence to pursue additional contracts, and the ability to scale without fear of liquidity gaps. TFN/Action's intervention turned a stalled and financially burdened contractor into a growth-ready operation. By replacing predatory MCA debt with opportunity-driven receivables financing, TFN/Action provided the structural support that enabled the business to move forward and expand under a sustainable financial model.
A $1.2M government IT contractor was trapped under a small bank credit line and two stacked MCA loans, preventing them from accessing the liquidity needed to fund payroll for two newly awarded contracts. Traditional lenders refused support due to competing UCC filings, weekly MCA withdrawals, and deteriorating financial posture. TFN/Action stepped in, used the contractor's receivables to buy out all three UCCs, and secured first position. They established a receivables financing line and an accrued revenue line of credit, giving the contractor the cash flow needed to hire 30 employees and perform the new work.
The MCA loans were eliminated, liquidity restored, and the company resumed healthy operations with a stable and scalable financial structure. As a result, the contractor grew forward with confidence and emerged from the predatory lending cycle stronger than before.