$1.6 Million Loan – Debt Restructure, Cash Infusion
Southern California Business
Principals had excellent credit. Despite that, and despite the fact that the principals had been successful in reducing the company’s debt by $850,000 over a six-year period, their bank of nearly 15 years, pulled the company’s $825,000 credit line secured by its $3,200,000 commercial building: impeding cash flow and forcing the company to rely on revolving debt.
The company came to National Equity Funding seeking a $850,000 loan. However, after meeting with the owners and reviewing their payables & receivables, National Equity Funding’s team of experts concluded that a loan of $850,000 would not be sufficient to solve their problem.
Within 10 days National Equity Funding secured a loan in the amount of $1.6 million.
With this loan the company was able to restructure their debt, increase their working capital and provide them with $350,000 to establish a new banking relationship.
Although the infusion of cash was key to the company’s ability to remain open short-term, it was only part of the solution. There had to be a viable plan to repay the loan. The strategy designed by National Equity Funding’s team allowed the company to eventually repay the loan of $1.6 million and continue on in good financial health.