Business Capital

Electroplating Company

Jen McCarthy — Thu, 26 Jan 2012 17:29:32 +0000

$5 Million Debt Restructuring

The Client

A Silicon Valley electroplating, polishing, anodizing and coloring firm servicing the manufacturing sector in Northern California. The company’s process is used in a multitude of applications including medical products and devices, power solutions, manufacturing services, engineering and technology capabilities.

The Situation

The metal plating industry suffered setbacks due to the impact of increased environmental regulations related to the by-product of the process. Coupled with the downturn in the economy, the client faced a significant and sudden decline in revenue and mounting debt as a result.

The Solution

Business Capital resolved over $5 Million in claims from over 100, mostly secured creditors. This out-of-court restructuring allowed the company to avoid bankruptcy and move forward on stronger footing. By dealing amicably and efficiently with the large number of creditors, the debt restructuring process was fast, cost-effective and resulted in aggregate savings of close to $4million. In addition to avoiding bankruptcy, this allowed the company to maintain strong relationships with critical vendors and suppliers and customer continuity.

Alternative Energy Power Plant

Jen McCarthy — Tue, 24 Jan 2012 20:16:14 +0000

$5 Million Bridge Loan

The Client

East Coast alternative energy plant, generating renewable energy from wood matter. The company sells power and energy credits at market rates.

The Situation

The company had become certified to produce Renewable Energy Credits (REC’s) and had a two year contract to gross approximately $17Million. The company’s newly acquired, integrated 28 megawatt wood-fired power plant serving the Northeast energy power pool, had a useful life of 25-30 years beyond the contracts. The plant had not operated in three years and required renovation and start-up financing to upgrade the facility to an electric generating power plant. The upgrade was vital to fill their contract and take advantage of the plant’s future operations and income producing opportunities. All permits were in place when the company’s financing fell through.

The Solution

Business Capital worked with its partners to successfully secure the $5 Million bridge loan. This bridge provided capital to complete the upgrades and re-commissioning of the plant, repair all systems needed for safe and consistent operation, and to purchase chippers to augment and secure consistent fuel supply. Business Capital arranged the asset based financing with a partial government guarantee for plant operation and fuel purchases.

Asset-Based Lending Hits Record

Jen McCarthy — Sun, 22 Jan 2012 20:09:34 +0000

A recent blog post cited data from a Thomson Reuters study indicating that the number and quality of asset based credit lines is growing. That is great news, especially for small and mid-sized businesses who are often turned down by their banks and rely on working capital from alternative commercial financing sources to fund a turnaround or rapid growth. The Commercial Finance Association’s largest members show a marked pattern of growth and a decrease in write-offs, supporting the claim that asset based lending continues to move rapidly into the mainstream and provide alternative commercial financing.

by Karen Kroll, Big Fat Finance Blog, January 20, 2012

Asset-based loans (ABLs), which typically are secured by an asset on the company’s balance sheet, such as inventory or accounts receivable, enjoyed a record year in 2011. The value of ABLs made during the year topped $100 billion, according to data from Thomson Reuters LPC. About 375 deals were completed, or more than during any of the previous seven years. Asset based loans accounted for 18% of the overall leveraged loan market, up from about 10% five years ago.

The bulk — in fact, more than 80% — of the loans were for refinancing. Conversely, the volume of new money deals came close to historical lows, due to drops in buyout financing for mergers and acquisitions, Thomson Reuters said.

The Commercial Finance Association, a trade group for the asset based lending industry, also showed an uptick in loan volume. Based on information received from 20 of its largest members, total committed credit lines grew by 1.5% between the second and third quarters of 2011, continuing a pattern of growth that began in the fourth quarter of 2010. More significantly, new credit commitments jumped by nearly 27% between the third quarter of 2010 and the third quarter of 2011.

The credit quality of the loans also improved. More than two-thirds of lenders reported either a decrease or no change in gross write-offs between the second and third quarters of 2011, the CFA said. This was the fourth quarter in a row in which gross write-offs as a percentage of loans outstanding had declined.

The ABF Journal, an industry publication, identified several dozen deals during 2011 that went for more than $500 million. A few topped $1 billion, including those with Ryerson Inc., a processer and distributor of metals; theme park operator Six Flags; Safeway, the supermarket chain, and Quad/Graphics, a printing company. The deals involving Health Management Associates, Golden Living, Penn National Gaming, and Alere exceeded $2 billion.

These numbers show that asset based lending, once thought of as a last-resort financing option, continues to move into the mainstream as a source of alternative commercial financing.

SFMade “Creative Capital for Manufacturers”

Jen McCarthy — Sun, 22 Jan 2012 18:38:14 +0000

When: February 8 from 6:00-8:30pm

Where: Hanson Bridgett, 425 Market Street, 26th Floor

What: Networking & refreshments & panel discussion

Cost: $35

Sign up: https://wwwsfmade.ticketleap.com

In some ways, capital for your business has never been trickier to come by; yet manufacturers have special opportunities – opportunities that service-based businesses and non-manufacturers do not have- to creatively leverage their assets to unlock capital, even as a start-up or early stage company. Come join SFMade’s Kate Sofis and a panel of experts in an exploration of the conventional and less conventional ways to fund the start-up and early stage growth of an artisanal manufacturer. Learn about how other successful manufacturers have used a combination of asset-based lending (including receivables, purchase order, inventory, equipment, and real estate); socially-responsible private equity; crowd-sourcing; and innovative retail partnerships. Featuring:

Jack Lieberman of Business Capital– An asset-based lending expert specializing in debt and growth capital financing for industrial companies, including financing on accounts receivable, inventory, machinery & equipment, rolling stock and real estate as well as equipment and vendor financing programs.
Jeff Gustafson – Co-Founder and former CFO of Vetrazzo, successful manufacturer of recycled glass countertops. Jeff successfully raised $7 million of equity through a network of high-net-worth, mission-based, individual investors, along with $2.5 million in state grant funding for new market development and $500k in economic development loans.
Sam Gordon of Oona, a Bay Area design/manufacturer of an innovative smartphone stand, who successfully launched with more than $130K raised on Kickstarter;

And a special guest from a major product retailer, to speak about their strategy to invest in promising early-stage artisanal manufacturers.

SFMade’s mission is to build and support a vibrant manufacturing sector in San Francisco, that sustains companies producing locally-made products, encourages entrepreneurship and innovation, and creates employment opportunities for a diverse local workforce.

International Distributor of Specialty Coffee & Tea

Jen McCarthy — Tue, 17 Jan 2012 01:39:04 +0000

$600,000 Senior Revolving Credit Facility

The Client

The client is an award-winning international specialty coffee and tea company. They provide a full spectrum of premium coffee and tea products and accessories in 25 countries around the world, including America’s premier chai brand now available in cafes, restaurants, and specialty food stores across the US.

The Situation

The client had aggressive plans to grow an assortment of complimentary products and increase penetration both to local and international markets. They were unable to secure traditional financing due primarily to their rapid growth and inability to leverage international assets.

The Solution

Business Capital was referred by the client’s existing bank which was unable to put together a competitive loan package to fund their plans for rapid growth. Business Capital was able to understand and present the international nature of their financial situation clearly and concisely to carefully selected lending partners, resulting in providing the client with the most competitive and intelligently structured financing package tailored to meet their needs for a successful growth strategy.

Business Wind Down

Jen McCarthy — Thu, 12 Jan 2012 16:28:39 +0000

Has your business encountered obstacles that are just too big to overcome? Do you feel you are out of options?

There are times when a business cannot successfully overcome various market and resource challenges. When this occurs, it is important to pursue a course of action that protects the clients’ interests and maximizes recoveries for all parties. At Business Capital, it is always our goal to develop and implement creative solutions that will return a company to prosperity, yet we also have the experience and insight to quickly identify those situations that can no longer be turned around. In the case of a business wind down, our objective is to maximize the value of our client’s business assets and strategically resolve outstanding financial issues and obligations that drain value.

Avoid the grinding halt to your business. Experience the benefits of working with a full service financial firm.

Wind down management can be a very complex and emotional process. The interests of the company and its employees; creditors, customers, lenders and attorneys all need to be recognized. Business Capital provides a team of professionals that can navigate you through the intricate maze of financial and business issues that now face your company. We work closely with business owners and management to structure a plan that is tailored to each company’s unique need. We will ensure all interests are addressed and fall within appropriate legal guidelines.Business Capital is one of the leading firms experienced in bankruptcy alternatives and alternative financial solutions and can manage each critical component of a successful wind-down. Whether it is
To learn more about a corporate wind-down, asset liquidation companies and how Business Capital’s services can help, complete the simple online questionnaire or call us directly today.aggressively collecting receivables that are owed our clients, communicating and reasoning with creditors or effectively dealing with financial issues such as business liquidation, — we produce exceptional results. At Business Capital, we present the facts and expedite the settlement process, effectively and inexpensively. We are accessible at all times to provide guidance and direction and maintain communication with all necessary parties.

Petroleum Distributor

Jen McCarthy — Tue, 20 Dec 2011 17:49:09 +0000

$10 Million Senior Secured Credit Facility

The Client

The company is a petroleum distribution company focused on multi-branded wholesale and distribution of fuel and lubricants. They sell several products including bulk lubricants, race gas, diesel, fuel oil, propane, and biodiesel on a commercial/retail scale. The company is a provider to manufacturing companies, construction fleets, farmers, automobile dealerships, government, as well as state and county transportation fleets

The Situation

The Company was experiencing losses and had tripped debt covenants and was therefore asked to exit by its current bank. Due to the large amount of debt and history of losses, the company was unable to find an alternative funding source.

The Solution

Business Capital successfully exited the company from the Special Assets Division of a local regional bank in less than sixty days and refinanced an accounts receivable based revolving line of credit and term loans. Business Capital also negotiated away all covenant deficiencies and penalties with the company’s previous bank. Working with its lending partners, Business Capital successfully structured an optimal financing solution that will enable it to achieve its future growth plans.

Commercial Printing & Fulfillment

Jen McCarthy — Tue, 20 Dec 2011 17:44:03 +0000

$4 Million Credit Facility & Debt Restructuring

The Client

A full service web and sheet fed commercial printing facility which offers the latest in electronic imaging and press service and features state-of-the-art digital printing, pre-press, offset printing, die cutting, binding, mailing and assembly services.

The Situation

The company had numerous litigating creditor claims and judgments stacked up, was out of covenant with its existing bank and unable to find a new lender to fund growth plans.

The Solution

To support the company’s re-capitalization and restructuring, Business Capital successfully exited the company from its local regional bank and negotiated away all covenant deficiencies and penalties. Business Capital simultaneously negotiated with several litigating creditors and successfully structured an optimal financing solution with new lenders. This out of court restructuring enabled the company to move forward on stronger footing and achieve its future growth plans.

Irrigation & Landscape Equipment Supplier

Jen McCarthy — Tue, 20 Dec 2011 17:37:44 +0000

$1.2 Million Credit Facility

The Client

The company sells and supplies equipment for commercial water features for residential, master development, municipalities, golf courses, cities, school districts, and highways. Products sold by the Company include irrigation pipes, pumps, controllers, electric control valves, fertilizers and herbicides, landscaping lighting and related products. Water projects that use their products include sprinklers, sewers, reclaimed pipes and landscape materials.

The Situation

Due to a decline in the economy and a series of weather-related obstacles, sales decreased and the company experienced some setbacks. When market conditions improved, sales increased but outstanding debt and high interest loans incurred during the slowdown prevented the company from taking advantage of the opportunity to increase product lines and manufacturing.

The Solution

To further the company’s growth, Business Capital restructured the Company’s debt and worked out new payment terms with critical suppliers and vendors. Working with its network of lenders, Business Capital also secured a more affordable revolving line of credit targeted specifically to address the client’s current and future needs and substantially increase their cash flow.

Public Media Conglomerate

Jen McCarthy — Tue, 20 Dec 2011 17:27:24 +0000

$7 Million Liability Restructuring

The Client

A large, publically traded worldwide media conglomerate specializing in large enterprise video solutions,

The Situation

The company was interested in expanding it’s distribution, technology, digital e-commerce and social networking capabilities through a planned purchase of a smaller media group’s technology and solutions. The target had a heavy debt load and it was imperative that they not go to into bankruptcy or liquidation in order to preserve the value of the assets.

The Solution

The client’s law firm introduced Business Capital. Within three months, BIZCAP restructured $7million of liabilities with over 150 creditors worldwide, reducing the overall debt by over 80% and paving the way for a successful acquisition. By dealing amicably and efficiently with the large number of creditors, the process was fast and cost-effective, keeping the valuable assets of the target intact and ensuring that the client’s cash investment was maximized. The successful purchase put the client in a strong position as a leader in global industry broadcasting.