“>CollateralEdge empowered a Louisiana-based bank to eliminate a borrower’s personal guarantee on a $3M line of credit, supporting the client’s recapitalization and growth strategy.
“>CollateralEdge empowered a Louisiana-based bank to eliminate a borrower’s personal guarantee on a $3M line of credit, supporting the client’s recapitalization and growth strategy.
Provided $2M in collateral coverage.
Enabled significant business expansion.
Strengthened long-term client partnership.
Inventory presented valuation challenges.
Recapitalization was expected to drive growth, but projections were untested.
The borrower sought to remove the personal guarantee to increase operational flexibility.
A $2M letter of credit issued by UMB Bank secured the loan.
CollateralEdge’s platform provided instant pricing and term sheets, allowing for a quick
and confident decision.
The bank retained control with options for quarterly extensions to match business performance.
The letter of credit allowed the bank to eliminate the personal guarantee while maintaining strong
credit protections.
The bank secured a high-potential client, positioning itself for future fee income.
The borrower leveraged the recapitalized structure to execute its growth plans effectively.
