Author: forbescapital

The client had committed to purchasing a property to start a business in the restaurant space. They also needed to complete renovations which would add to costs. Funds were lacking to purchase the property and also complete renovations.

Forbes Capital Solution

Plan a solution and execute successfully by:

• Securing 90% of the financing for the property purchase via the government backed CSBFL program
• Preparing a comprehensive loan proposal that addressed the risks and provided appropriate mitigants to get lenders on side with the financing

Impact

• With 90% financing on the property purchase the client was able to devote funds to renovate the premises and purchase new equipment

• Results have been stellar after one year of operations
• Client is very happy with the success of the current operations and is exploring expansion in other markets

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

A manufacturer and installer in the construction industry was not in compliance with the existing lenders covenants triggering a transfer to Special Loans. Additional funds were required to help the client with growing their foreign business consisting of a very strong pipeline.

Forbes Capital Solution

Plan a solution and execute successfully by:

• Completing a comprehensive analysis of the company’s risk profile, asset base, projections and borrowing base
• Approaching lenders with a loan proposal that requests additional funding and provides a strong security structure
• Assisting the client with dealing with the Special loans department to ensure smooth operations
• Executing a successful transition to the new lender

Impact

• Forbes was able to secure a 75% increase in financing from the existing level and transfer the client to a new lenders within 60 days

• The client was able to take on new and larger orders with the additional capital and grow the business
• Avoid major disruption to the business by quickly exiting the Special Loans department of the old lender which was not willing to lend additional capital