Collateral Loans

A New York based real estate developer had over 20 million dollars in equity on his balance sheet. He went to the banks he was currently doing business with for a 2 million dollar loan. He was turned down because he showed “no income” for the last two years.

Banks, today, are very “cash flow sensitive”. The Liquidity Source was able to obtain a “COLLATERAL LOAN” from a private investor at a higher rate, but got the client the 2 million dollars that were needed to meet the developer’s obligations. Learn More

Private Wealth

A Long Island man in the automobile business was looking for 5 million dollars in financing. His personal wealth was tied up in securities and did not want to liquidate in order to provide the capital. There was no bank looking to do “floor plan” financing. The Liquidity Source took him to a “PRIVATE WEALTH” division at a major bank. He put up the securities and was funded at 100 basis pt. over 60 day libor or 1.22% annually.

Acquisition Financing

A company in the Northeast was looking to do ACQUISITION FINANCING for “top line” growth. He had a pc. of real estate that was worth 3 million dollars with no mortgage. His bank had suffered large real estate losses and was unable to help him. The Liquidity Source was able to take him to a facility and get him a 2 million dollar mortgage for 5 years on a 20 year amortization schedule which allowed him to complete his acquisition.

Working Capital & Inventory Line of Credit

A retailer on the west coast had a commercial line from his bank for 10 million dollars. With the economy eroding, they were in need of additional WORKING CAPITAL. The profits of the company were down but The Liquidity Source was able to get the company an INVENTORY LINE OF CREDIT for $1.5 million dollars that they needed to operate and grow during these difficult times.

Private Investor Capital

Account Receivable Financing & Asset Based Lending

A shoe manufacturer based in the Northeast had an ACCOUNT RECEIVABLE FINANCING deal with their bank. The business was growing and in much need of capital. Their bank was very main stream and very conservative. The Liquidity Source got them a new facility with an ASSET BASED LENDING program that met their financial needs.

Leveraging receivables to fund business growth

A Michigan-based commercial glazing company needed capital to fund its expanding operations. The company had a $200,000 revolving credit facility and a $200,000 term loan. Its average receivables, based on a $5 million business on a 60 to 90 day cycle averaged $1,000,000. The company asked The Liquidity Source to help it obtain an increase on its existing loans. However, after analyzing the company’s situation and taking its near-term financial needs and long-term organizational goals into consideration, The Liquidity Source recommended they consider obtaining an asset-based loan with accounts receivable financing instead.

We compiled the necessary financial data and prepared the loan package, ensuring that lenders would have all of the information they would need to take the loan to committee for approval. After contacting several lending institutions that we knew might be interested in and willing to approve a loan with these terms, we successfully negotiated a new, asset-based loan with accounts receivable financing at 75 percent. With a $750,000 line of credit, our client was able to pay off the revolving credit facility and the term loan and now had access to an additional $350,000 to fund its growth.

Creative options to provide immediate liquidity

A New York-based manufacturer and importer of air-powered tools and builders' hardware was losing money and desperately needed access to capital to enable it to ride out the storm. The company had a $2 million mortgage on the building it owned and where its nationwide operations were based. The appraised value of the real estate was $12 million. The Liquidity Source devised an option that would allow the client to tap into its real estate equity without having to relocate the business. We negotiated a sale leaseback in the amount of $6 million. The $2 million mortgage was paid down, leaving the company with access to $4 million to address its near-term capital needs.

Negotiating better terms by creating a competitive environment

A New York-based apparel company needed to access additional capital for liquidity and growth. The company had an accounts receivable agreement with a conservative lending institution at 65 percent of outstanding receivables. After analyzing its financial position and discussing its financial goals, The Liquidity Source recommended that the company look at different options, both in terms of financial products and in terms of lenders. We successfully negotiated a new accounts receivable agreement with a different lender at 80 percent of outstanding receivables. The lender also agreed to provide a 50 percent advance on inventory. The new terms enabled the company to free up some of the cash it had tied up in inventory for more pressing needs.