Issue: Middle market sized commercial electrical contractor was asked out by their bank due to large loss in prior year. This was a very complex deal due to the fact that they also were renegotiating commercial real estate with the same bank.
Solution: Since the payoff of the revolver would've squeezed most of client's availability, a negotiated settlement allowed for a rollover of over half of facility into the existing real estate loan. The Lender then provided a competitive fee structure and advance rate to fund the construction/progress billing A/R. We also negotiated a subordination agreement with the bank while the real estate restructure was occurring. The combination of the restructured real estate loan and Lender's A/R line has allowed the company to affordably increase cash flow, grow its business by working on its backlog and head back to profitability.
Win/Win Solution: Client felt relieved and thankful that the Lender was able to understand their complex funding issues, and offer the necessary flexibility to extend an aggressive funding program to handle their turnaround situation.
We find Lenders for deals such as the one above and for manufacturing, healtcare, engineering, consulting services, distributors, temporary staffing, BOL, and security.
C. Ingraham, RTRP
Email: Taxeswilltravel @ aol dot com
