Inter-business referral collaborations: expand your horizons

It’s not only important to have good customers but having the right referral partners is essential for the growth of a business. The following deal is an example of having the right referral partners!


All Purpose Lenders Deal Of The Week: Equipment financing combined with an ABL Line Of Credit:


  • Deal Background?

The company was in the manufacturing business and needed additional equipment totaling $1,300,000 to build a new production line in order to reach a profitable stage of growth. It was referred by a bank because the borrower was not cash flow positive and the bank was trying to get the business owner to transfer the companies operating account to them. They also knew that the business owner current bank was not willing to finance the deal as well.  The banker brought me in to utilize my expertise and my ability to come up with alternative solutions.  I was able to find a lender who knew the business and was comfortable that with the new equipment the company would eventually become a cash cow! The lender was willing to use the old and new equipment as collateral to get them the financing needed.


  • What was the challenge?

The company was not cash flow positive at that time.  They also had a lien with the IRS we had to overcome.  We were able to convince the investors in the company to subordinate to the new lender in order to help grow their investment.  We then needed to find another lender that would help to facilitate an ABL LOC so the company could pay off the IRS and get them out of the way for the new lender as well.


  • How did you overcome the challenge?

I reached out to a number of my lenders and I was able to coordinate the different lenders and financing so that everyone would be satisfied in the role they played and that they would indeed get paid back their portion of the loan.


  • How you were able to help the customer in need for the loan?  I was able to provide a number of different lenders and types of loans to be able to structure a deal where each lender was playing a critical part in making this a solid deal and a win win for everyone involved.


This is a prime example of the value I was able to add by reviewing the borrowers need and the various lenders I am associated with so we could find a creative solution to get the financing the business owner would need to grow the business!