Additional Working Capital Financing Case Studies | ◄  Back

Example #1 (Closely Held Transportation Company)


LMC’s STRATEGY AS DESCRIBED IN FINANCIAL OPTIONS REPORT:

CONSOLIDATE 30 DIFFERENT DEBT FACILITIES INTO ONE
STRETCH OUT AMORTIZATION
CUT DEBT SERVICE ALMOST IN HALF
 
BEFORE

$10 MILLION PRIVATE TRANSPORTATION COMPANY
$1.9 MILLION EBITDA and $734K EQUITY
$1.9 MILLION IN DEBT SERVICE PER YEAR ($158K/MO), LEAVING NO WORKING CAPITAL
LINE OF CREDIT CAPPED AT $400K
EQUIPMENT FINANCED WITH 30 DIFFERENT INSTALLMENT LOANS
 
AFTER

REPLACE $400K REVOLVER WITH $800K REVOLVER AT PRIME + 1%
INCREASE REVOLVER ADVANCE YIELDS $400K IN AVAILABILITY
REFINANCE $4.2 MILLION EXISTING TERM DEBT AT PRIME + 1.5% STRETCHING AMORTIZATION TO 5 YEARS
REDUCE ANNUAL DEBT SERVICE BY $840K PER YEAR OR $70K PER MONTH
 


Example #2 (Privately Held Direct Mail Company)


LMC’s STRATEGY AS DESCRIBED IN FINANCIAL OPTIONS REPORT:

REFINANCE EQUIPMENT AND REAL ESTATE CUTTING DEBT SERVICE
LOWER INTEREST COSTS AND INCREASE WORKING CAPITAL BY $275K PER YEAR
 
BEFORE

$5 MILLION PRIVATE DIRECT MAIL COMPANY
$400K EBITDA and $0 EQUITY
FACTORING ACCOUNTS RECEIVABLE AT 2.75% PER INVOICE
$500K IN EQUIPMENT LEASES
$1.6 MILLION REAL ESTATE BALLOON PAYMENT DUE
 
AFTER

REPLACE FACTOR WITH $500K REVOLVER AT PRIME + 2.25%
REFINANCE EQUIPMENT WITH $660K TERM LOAN AMORTIZED OVER 84 MONTHS
REFINANCE REAL ESTATE DEBT WITH $1.5 MILLION AT PRIME + 2.25% AMORTIZED OVER 20 YEARS
REDUCE ANNUAL DEBT SERVICE BY $275K PER YEAR OR $23K PER MONTH
 


Example #3 (Public Oil and Gas Services Company)


LMC’s STRATEGY AS DESCRIBED IN FINANCIAL OPTIONS REPORT:

LOWER INTEREST COSTS
RAISE COLLATERAL ADVANCE RATES
 
BEFORE

$22 MILLION PUBLICLY-TRADED OIL & GAS SERVICES COMPANY
$3.3 MILLION EBITDA and $7 MILLION EQUITY
$6 MILLION PREVIOUS YEAR LOSS and LOSSES PRIOR TWO YEARS
 
AFTER

REPLACE $5 MILLION REVOLVER AT LOWER INTEREST RATE
INCREASE REVOLVER ADVANCE RATE TO PROVIDE $0.75 MILLION ADDITIONAL AVAILABILITY
REFINANCE $4.5 MILLION EXISTING TERM DEBT AT LOWER INTEREST RATE
REDUCE ANNUAL DEBT SERVICE BY $1.85 MILLION
SET UP NEW $4.2 MILLION CAPITAL LEASE FACILITY



Example #4 (Privately Held Restaurant Company)


LMC’s STRATEGY AS DESCRIBED IN FINANCIAL OPTIONS REPORT:

RESTRUCTURE FORTY-ONE DEBT FACILITIES INTO THREE
IMPROVE MONTHLY CASH FLOW BY 2.5 TIMES

BEFORE

$10 MILLION RESTAURANT GROUP
$0.9 MILLION EBITDA
$1 MILLION ANNUALLY IN DEBT PAYMENTS
$0.8 MILLION IN ACCOUNTS PAYABLE, 50% OVER 180 DAYS, ON C.O.D.

AFTER

$0.25 MILLION REVOLVING CREDIT LINE
$2.75 MILLION 15 YEAR REAL ESTATE LOAN (PRIME +2)
$0.55 MILLION EQUIPMENT LOAN
$0.22 MILLION ANNUALLY IN DEBT PAYMENTS
PAY OFF ACCOUNTS PAYABLE, NOW OFF C.O.D.



Example #5 (Privately Held Medical Products Company)


LMC’s STRATEGY AS DESCRIBED IN FINANCIAL OPTIONS REPORT:

PULL THE COMPANY OUT OF LIQUIDATION AND SAVE 375 JOBS
SECURE NEW REVOLVER
SECURE NEW EQUIPMENT AND REAL ESTATE TERM DEBT
ARRANGE DEBT FORGIVENESS
 
BEFORE

$12 MILLION MEDICAL PRODUCTS COMPANY IN CHAPTER 11
$10 MILLION BANK LENDER ABOUT TO FORCE LIQUIDATION
$1 MILLION IN UNSECURED CREDITOR PAYABLES
NET WORTH AT NEGATIVE $3.5 MILLION
 
AFTER

$3 MILLION REVOLVING CREDIT LINE SECURED BY RECEIVABLES
$0.35 MILLION EQUIPMENT LOAN
$1.75 MILLION REAL ESTATE LOAN, 95% GUARANTEED BY FEDERAL & STATE AGENCIES
SELL OFF GUARANTEED LOAN AT IMMEDIATE $0.17 MILLION PROFIT TO FUNDING BANK
COMMERCIAL BANK LENDER FORGIVES $6 MILLION

Many Other Special Programs Available

We have many niche lending programs available, including those suitable for companies with less than perfect credit.　 If you have had difficulty getting the financing you need, please give us a call.

For more information, or if you have an opportunity you would like to discuss, please contact Ron Giguere at 888.859.6025

 

Financing Case Studies | ◄  Back