| Story #1 – Customer with “Special Needs” - $275,000 (Injection Molding Machine)
With this highly creditworthy client, we had to deal with a number of “special requests”. While competing with several top lending sources, we secured an approval with several “credit enhancements” that met all of our customer’s specific needs. These included a personal guarantee waiver, extended payment terms (84 versus 60 months), no upfront payment (100% financing), a reduced prepayment penalty (2% rather than 5%) and a 90 day skip payment.
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Story #2 – Turn-around with a “Sketchy History” - $350,000 (Metal Spinning Machine)
With this “Story Credit”, we had to present the transaction to 6 lenders before obtaining a credit approval. This client nearly declared bankruptcy in the late 90’s and struggled forward with a negative Net Worth, negative Working Capital and negative Cash Flow – with no access to credit. By demonstrating a positive Cash Flow with a large pipeline of new business, we secured an approval for a 48 month lease with 25% down.
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| Story #3 – Imported Machine w/ Advance Payments - $950,000 (Six Color Press)
This client needed financing for a large printing press from a Taiwanese manufacturer. A 25% advance payment was required with 40% due at shipping and 35% at delivery. We were able to meet the client’s need to finance the 65% advance payment with a letter of credit in favor of the manufacturer. The L/C was secured by real estate. Once the machine entered the US, the lease was funded, the L/C was paid and the real estate was released.
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Story #4 - Line of Credit for Equipment and Working Capital - $3,500,000
This transaction began as a simple $300,000 lease request from a US subsidiary of a European manufacturer. The sub had a negative Cash Flow and a negative Net Worth. Once we determined the client’s need for additional financing, we structured and approved a $3,500,000 line of credit secured by existing unencumbered manufacturing equipment, inventory and receivables. It also involved a subordination of existing debt from the parent.
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