Case Studies

Case Study: Credit Card Processor Partners to Expand

Case Study: Credit Card Processor Partners to Expand

Sterling Payment Technologies was experiencing rapid growth to the point of exceeding the financial capabilities of the bank it was partnered with at the time. To better facilitate future growth, Sterling required a partnership that would be flexible, as well as provide expansion capabilities for years to come. The company found this flexibility and opportunity with SunTrust.

“SunTrust was the bank we identified that could best serve our needs and was also of the size that as we grew, would be capable of syndicating our facility down the road, should we choose to have multiple banks in our facility.”—Steve Kane, Sterling Payment Technologies, LLC Senior Executive Officer, Business Development & Development Counsel

The SunTrust OneTeam Approach in Action:

Several parts of the bank were brought in to facilitate Sterling’s growth ambitions, and simple steps were taken right away, such as transferring the company’s various accounts to SunTrust. The partnership quickly expanded to include relationships with SunTrust’s deposit and treasury departments, as well as its financial specialty group and financial risk management teams.

From the beginning, SunTrust was creative in its approach, and was able to identify specific aspects of Sterling’s financial operations that could be expanded to help lay the groundwork for continued growth. The primary driver of SunTrust and Sterling’s relationship was the creative and flexible financing proposal that SunTrust put forward, including a unique settlement revolver, which gets paid down to a zero balance each month (a solution that is specific to the payments industry). What’s more, SunTrust provided a general-purpose revolving credit facility as well as two-term loans, one to refinance outstanding existing debt and a second for acquisitions.

And when it came to the B2B division, Sterling was looking for a purchase card solution that could be used as a test card to propose various opportunities to prospective clients. Sterling requested this one-off solution from other banks, but only SunTrust was able to deliver and effectively meet Sterling’s specific needs.

The SunTrust OneTeam Solution:

The revolver has played a crucial role in the company’s expansion, as it assists Sterling in supporting its merchants. Essentially, Sterling is reimbursed from Visa and MasterCard at the beginning of each month. However, there are aspects of the industry that require merchants to be paid as quickly as possible to assist with their own cash management. Having a revolver in place that provides adequate working capital flexibility enables Sterling to confidently make payments to its merchants at the middle or end of the month, with the security that timely reimbursement is forthcoming.

And this revolver, in addition to having a separate working capital piece, also had an accordion feature built in, which was an important advantage for Sterling, as it allowed the company to expand their credit facility as it grew.

“We are a rapidly growing company and we’re very pleased with the performance of our relationship with SunTrust and they’ve been an excellent partner for us. It’s an interactive relationship at all levels … all the way to the President of SunTrust itself. As we grow our business, our partnership affords us the opportunity to utilize some of their more sophisticated products and services.”—Steve Kane, Sterling Payment Technologies, LLC Senior Executive Officer, Business Development & Development Counsel

The Benefit:

Sterling Payment Technologies has been able to grow freely and creatively with the help and support of its partnership with SunTrust. By using products that are tailored to their needs and conversing with bank experts for their guidance, Sterling has been able to demonstrate consistent, efficient and effective growth, and do so in a style and timeframe that’s within their control.

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