Functional Pathways continues to excel at providing premier contract therapy services nationwide. Here’s how the SunTrust team has helped them stay ahead of recent industry changes and continue to grow.
Name: Functional Pathways
Location: Headquartered in Knoxville, Tennessee, with locations in 21 states.
Business Profile: Functional Pathways is a contract rehab provider offering rehabilitation services, physical therapy, occupational therapy and speech therapy to long-term care facilities.
Business model: Making a difference by providing excellence in rehabilitation.
Functional Pathways’ Smart Growth Story:
Since 1995, Functional Pathways has excelled at providing premier contract therapy services nationwide. With the help of SunTrust, Functional Pathways has stayed ahead of recent industry changes and continued to grow. Today, the company’s overall growth rate is around 15 to 20 percent each year.
The SunTrust OneTeam Approach in Action:
SunTrust has used its extensive industry expertise to work with Functional Pathways to deliver creative financing solutions. In order to further the company’s consistent growth, SunTrust brought in its Aging Services division as well as its treasury partners. This has helped Functional Pathways substantially increase its line of credit over the last 20 years. SunTrust has also provided Functional Pathways with a full complement of banking services, including treasury management, to aid in growing its operations.
Since Functional Pathways mainly provides personnel, this larger line of credit has enabled the company to simplify the process of staffing new facilities. If a facility opens on January 1, for example, Functional Pathways doesn’t invoice that facility until February 1 (often with 60-day payment terms), so Functional Pathways can pay those newly hired employees for three months before they themselves get paid.
SunTrust and Functional Pathways regularly meet to analyze their line of credit and to determine their estimated growth and what financing might be needed. SunTrust and Functional Pathways recently expanded their line of credit even more, roughly 60 percent, in anticipation of future growth and projects.
“SunTrust really went to bat for us and gave us the line of credit capacity that we need to grow our business. It’s not just maintaining what we have, but it’s looking at how we can grow. They have equipped the line of credit capacity we have today that has allowed us to go out and market Functional Pathways.”
—Traci McCullough, CFO of Functional Pathways
The SunTrust OneTeam Solution:
From day one, SunTrust understood Functional Pathways’ mission to help others, as well as its goal to grow nationwide. With the right financing approach, Functional Pathways continues to achieve financial growth. “SunTrust has been with Functional Pathways every step of the way to help us with our growth,” says Traci McCullough, CFO of Functional Pathways. This partnership has allowed Functional Pathways to expand to 140 facilities throughout the country.
Key Achievements (all numbers approximate):
Growth rate each year since inception: 15-20%
Current number of employees: 2,300
Current number of states: 21
Current number of facilities: 140
· Functional Pathways is projecting to open 30 more facilities in 2017.
SunTrust’s proactive approach to delivering appropriate credit and other financial services will allow Functional Pathways to continue to grow and stay ahead of the curve in its industry.