Refinancing existing debt and securing working capital
Aviation Parts Distributor Wins Low Cost Flexible $5MM Credit Facility
An aviation parts distributor needed to use the credit facility to increase inventory purchases. Most lenders restrict usage of credit facilities for inventory based on a percentage of the accounts receivables (“A/R”) balance. The borrower had a fast collections cycle resulting in low A/R, so most lenders were unable to provide meaningful capacity on the line to fund inventory purchases.
To avoid using a very expensive (18% to 24% annualized rate) Purchase Order finance facility, the borrower turned to Cerebro’s lender network and RFP process. A national commercial bank offered competitive terms to cover both the refinancing and inventory purchase needs, while also keeping interest rates more than 50% below other offers with similar loan amounts and structure.
Winning Term Sheet
How Can Cerebro Help Your Business?
Based on data collected from lenders and closed deals on our platform, Cerebro can provide you with an estimate of available loan options, estimated borrowing capacity and borrower strengths and weaknesses to help you make the best decision for your business. Our complimentary loan assessment takes just 15 minutes to complete.
You may also be interested in