Receivables-based ABL Closed With Non Bank Lender
Borrower seeks increased capacity to grow a portfolio of B2C receivables
Our borrower had a shorter operation history and reinvested all profits in growth initiatives that are not capitalized on the balance sheet limited the creation of book equity value. Many lenders perceived this as a challenge and preferred to be paired with a dilutive round of new equity as a condition for funding incremental capacity.
Cerebro was able to identify a non-bank, specialty finance lender with a deep knowledge of consumer receivable financing. Our lender understood the value of the underlying portfolio performance as the best indicator of credit risk. With our Borrower demonstrating strong performance on their assets, the reinvestment of profits to further growth were received more positively. With this structure, the Borrower has the debt capacity required to double their business over the life of the loan.