This case study below highlights the different forms of flexibility and creativity that we offered:

 

Deal Spotlight!

FINANCED CASE STUDIES

RE-PLACEMENT AND EXPANSION FINANCING  

This company is a manufacturer and installer of insulation panels for industrial and commercial projects.  Company sales were growing and financial results showed good profitability. However, working capital was strained because of increasing account receivable balances and pushed the company to the limits of its existing credit facility. The working capital shortfall was never properly addressed and as a result, the bank cancelled and called the credit facility. We provided a two step solution. The proposed program called for an immediate credit facility replacement together with an increase in the facility to accommodate  the increasing sales growth.

PROGRAM

BEFORE
LOC                       $     350,000

 

                                     ________
                               $     350,000              


                                                                       
AFTER
LOC - Primary                  $  500,000

LOC - Secondary                  100,000

WC Term Loan                       280,000

                                               ________
                                          $  780,000                

 

TERMS & CONDITIONS
Ø         Primary LOC at Prime plus 1.5% (reduced from 2.25%) secured and margined on accounts receivable and inventory.

Ø         Secondary LOC at Prime plus 1.75% unsecured and not margined.

Ø         Working Capital Term Loan at Prime plus 1.5% secured by equipment.

 

FEATURE & BENEFITS
Ø          Replaced existing facility before any harmful action by the bank.

Ø          Significantly improved financing program and increased available working capital.

Ø          Improved cost of funds and reduced rates by .75% on new financing program.

 

OTHER
 Ø          NetFinance placed and sourced all the funding for the client. 

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