$1.6 Million Loan – Debt Restructure, Cash Infusion

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.