Case Studies

CASE STUDY #1

Food Manufacturer

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Table of Contents

    This family-owned food distributor has worked with an established bank to secure working capital, but the company suffered major losses due to the lack of financial reporting.

    They reached out to SMB Compass, and we took the time to understand their current situation and provided a financing solution that works best for them. Lenders approved a loan based on their established business history and credit rating.

    Client Characteristics:

    • Major losses in previous 2 FYE
    • Understaffed Accounting and Finance Team
    • Bank was within formula but had concerns given the lack of reporting
    • The company was in default for 18 months

    Solutions

    • SMB provided a refinancing option after spending time with the company to understand their situation and potential path to refinancing
    • Negotiated with appraisal companies to start appraisals early prior to engaging lenders
    • Ran a process that provided a refinancing in 101 days
    • Paid off bank whole

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