Limited Financial History

Driving Growth for a High-Potential Construction Firm

CollateralEdge enabled a Texas community bank to increase a line of credit for a civil construction company with limited financial history, helping the borrower meet growing working capital needs.

Increased Credit:

$4M line of credit supported by $400K collateral.

Enhanced Relationships:

Strengthened two client relationships.

New Growth Opportunities:

Positioned the bank for future business expansion.

Challenge, Solution & Results Challenge

This community bank prides itself on fostering local economic growth by offering flexible financial solutions to emerging businesses.
  • Key challenges
The borrower’s limited financial history and asset-lite model posed significant underwriting challenges.
  • Short Operating History:

Less than 1.5 years of financial records.

  • AR-Heavy Collateral:

Most collateral comprised accounts receivable, with no inventory.

  • New Relationship:

Referred by an existing client but new to the bank.

  • Solution
CollateralEdge provided a risk-mitigating collateral solution.
  • Collateral Letter of Credit:

A $400K letter of credit issued to bolster the loan’s collateral base.

  • Dynamic Platform:

Enabled quick assessment and approval of flexible collateral coverage.

  • Growth-Driven Lending:

Allowed the bank to meet the borrower’s increasing capital requirements.

  • Results
  • Increased Lending Capacity:

Extended a $4M line of credit to meet operational needs.

  • Dual Relationship Strengthening:

Reinforced ties with both the new borrower and the referring client.

  • Revenue Growth:

Positioned for fee income and future lending opportunities.

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