Unavailable Personal Guarantee

Supporting Expansion for a Global Telecom Manufacturer

“>CollateralEdge enabled an Oklahoma-based regional bank to extend a $1M line of credit to a telecom manufacturer despite unavailable personal guarantees and out-of-market inventory.

Risk Mitigated:

$400K collateral provided.

New Client Relationship:

Bank gained a foothold in a new sector.

Growth Facilitated:

Supported expansion of U.S. operations.

Challenge, Solution & Results Challenge

This regional bank offers customized financial services to a diverse client base, emphasizing global growth opportunities.
  • Key challenges
The borrower faced underwriting challenges due to unavailable personal guarantees and out-of-market inventory.
  • Unavailable Guarantees:

Executives were unable to provide personal guarantees.

  • Out-of-Market Inventory:

Inventory was located overseas, complicating collateral valuation.

  • New Relationship:

Borrower was new to the bank, adding risk.

  • Solution
CollateralEdge offered a flexible collateral solution to address these issues.
  • Collateral Letter of Credit:

$400K coverage secured the loan.

  • Streamlined Underwriting:

CollateralEdge’s platform enabled rapid evaluation of collateral scenarios.

  • Control and Flexibility:

The bank maintained full control over loan terms and collateral usage.

  • Results
  • Credit Granted:

Loan extended to support U.S. expansion.

  • Enhanced Risk Management:

Risk mitigated despite complex collateral challenges.

  • Strategic Growth:

Bank positioned as a key partner in the borrower’s global growth strategy.

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