Distribution & wholesale 38 staff, $42M revenue · 11 weeks
A $9.5M facility for a distributor the bank had turned down
The company's bank declined to renew a $4M overdraft after one bad quarter. We rebuilt the numbers, went to six asset-based lenders and closed a facility more than twice the size.
Committed working-capital facility
Before
$0
After
$9.5M
A family-owned food-service distributor lost a large customer mid-year and posted one loss-making quarter. Its bank of fourteen years declined to renew the $4M overdraft, with ninety days’ notice.
What we found
The business was sound: the lost customer had been replaced within five months, and receivables and inventory were high quality. The bank had been sent a single quarter’s management accounts with no explanation and no forecast.
What we did
We built a three-statement model tied to three years of accounts, wrote a twelve-page lender pack explaining the lost quarter and the recovery, and approached six asset-based lenders who lend against receivables and stock rather than past profits.
The result
Three term sheets in eight weeks. The owners chose a $9.5M asset-based line at a lower margin than the old overdraft, closing eleven weeks after we started and two weeks before the old facility ran out.