Asset-Lite
Business

Supporting Growth for an Asset-Lite Renewable Energy Company

CollateralEdge helped a Texas community bank fund a $5M line of credit to a renewable energy company, overcoming challenges related to limited collateral.

Secured Loan:

$3M collateral coverage provided.

Fast Execution:

Loan closed within tight deadlines.

New Relationship:

Bank gained a growing commercial client.

Challenge, Solution & Results Challenge

This community bank serves local businesses with personalized financial solutions, focusing on fostering economic development in the renewable energy sector.
  • Key challenges
The renewable energy company’s asset-lite model and short financial track record posed significant underwriting challenges.
  • Asset-Lite Business Model:

Limited physical collateral was available.

  • New Relationship:

The borrower was new to the bank, adding risk.

  • Tight Deadlines:

The borrower required immediate funding to capitalize on growth opportunities.

  • Solution
CollateralEdge delivered a custom collateral solution.
  • Collateral Letter of Credit:

A $3M letter of credit issued by UMB Bank provided 60% loan coverage.

  • Rapid Pricing:

The CollateralEdge platform enabled the bank to price the loan in minutes, ensuring timely funding.

  • Scalable Coverage:

Flexible renewal terms ensured continued support as the borrower’s business grew.

  • Results
  • Quick Approval:

The loan was processed and approved within a tight deadline.

  • Increased Lending Capacity:

The bank provided a large line of credit without compromising risk standards.

  • Stronger Market Position:

The bank strengthened its presence in the renewable energy sector.

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