A retail business negatively impacted by COVID and significant seasonality seeking to follow its departing relationship manager.
The borrower wants to follow its longtime banker to a new financial institution. Given this is a new relationship to the bank, there is some discomfort about the seasonality and one-time losses.
Borrower’s business slowed during COVID and is extremely seasonal. During the summer months the business slows and the line is nearly 100% inventory reliant.
The Banker was looking for 15% of CollateralEdge support to offset the extraordinary losses and the inventory reliance within the borrowing base.
The bank gains a new client despite near-term difficult underwriting risk. The full relationship moves over yielding the bank new deposits and treasury management services.
“CollateralEdge is solving a massive problem for community banks that will positively impact thousands of hard – working entrepreneurs.”
The borrower remains with their long-time banker.Their relationship with the new bank is now off to a great start.
CollateralEdge is an innovative fintech platform that provides community and regional banks with a flexible, automated risk management solution to strengthen the credit profile on individual corporate loans.
The financial sponsor has found a well-established manufacturing business that fits nicely within its investment criteria.
The owners want to restructure debt and take advantage of favorable movement in rates.
Financial sponsor has successfully rolled-up 40 dental practices and wants to restructure the associated debt.