The client was unable to sign new clients or service additional business from existing clients due to lack of working capital. Growth was restricted and there was a risk that clients would go to competitors.
Forbes Capital Solution
Plan a solution and execute successfully by:
- Reviewing the business history and potential growth opportunities
- Shoring up the weak balance sheet through outside security
- Preparing a loan proposal that addressed the need for a sizeable operating line
- Reduce costs of expensive private debt which was straining cash flow
Impact
- Forbes was able to secure a line of credit and swap expensive private term debt for more manageable Bank debt
- The client was a able use additional working capital to double their business within one year
- With cheaper debt on the books the company is more profitable due to substantial savings on interest costs