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$2.6 Million Equipment Bridge Loan Provides Working Capital For Manufacturer Without Debt Service Coverage

The London Manhattan Company is pleased to announce it recently arranged equipment financing for a manufacturer located in the Eastern US based solely on the financed equipment’s collateral value. The borrower could not provide coverage due to operating difficulties.

The Situation:

This manufacturing borrower had a long history of successful operations with annual revenues running just under $20 million. The company suffered badly from competitive pressures, and was forced to close some of its manufacturing locations and consolidate operations.

The company experienced significant operating losses and deterioration of net worth. The company had an immediate need for capital and additional liquidity, but could not provide debt service coverage to attract new financing.

The Equipment Financing:

LMC arranged new Equipment Financing with the following attributes:

Loan Amount: $2.6 Million
Equipment Financed: Manufacturing Equipment Located in Borrower’s Plant
Loan Term: One Year
Loan To Value: Percentage of Liquidation Value of Equipment Financed
Collateral: 1st Position Lien on Equipment Financed
Payments: Monthly Principal and Interest Payments
Prepayment Penalty: Yes; Six Months Minimum Interest Obligation
Personal Guarantees: None
Debt Service Coverage: Not Required

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

 

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