Term Loans for Story Credits: Real Estate and Machinery & Equipment

Lenders generally are averse to lending to companies, whose lendable collateral base is deemed too term heavy.  This is especially pronounced if the company is a story credit (which many will be due to the coronavirus).  Companies and their financial advisors are having to cobble together lenders for the various asset classes rather than going to one source.  For example, a factor will provide the Accounts Receiving financing but not for the other collateral.

If a company’s cash flow can support a proposed debt structure and / or the collateral base is underlevered, then a company who is “relatively” heavy on real estate or machinery & equipment should not be given short shrift.  Lenders, who operate in this space, can receive a premium for the perceived risk.

Please contact s.grabish@finadvisr.com if you have a borrower that is deemed “term heavy”.  FinAdvisr.com has a network of lenders that are focused on these asset classes, and we can provide a solution that works!