A growing manufacturer was hampered by high capital costs and a debt structure from its present lender that did not accurately reflect the nature of the company’s assets and risk. Furthermore, future growth would likely be limited as additional add-on financing from the lender was highly unlikely.
Through a detailed review of the company’s balance sheet and historical trends coupled with a deep understanding of the lending markets, a revised capital structure was proposed to the CEO. This structure properly matched multiple loan types with the underlying assets of the company and also provided significant cash flow to cover any debt service at much higher levels.
After assembling a financial package with narrative and financial support, Fintrepid Solutions presented to multiple qualified bank lenders, successfully communicating the positives of the business to the bank and proactively mitigating perceived risks. Detailed analysis of term sheets and structures were evaluated to determine the impact on the company as well as weighing the best overall fit as a banking partner moving forward.
The company was able to refinance into a much more favorable structure with a line of credit, term loan on its equipment and fixed assets and an acquisition line for growth. Operating cash flow improved by 20% and interest costs and fees were reduced by almost 30%. The company also now has a long-term banking relationship in place.GROW BOLDLY fintrepidsolutions.com