Debt Advisory

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About Our Debt Advisory Group

SMB Compass Debt Advisory Group focuses on advising companies by providing tailored financing options. As an independent firm, SMB moves efficiently through engagement and its advisors transact with the best interest of the client in mind. We are fully invested in finding the appropriate financing path for our clients. Founded by former lending professionals, SMB Compass has deep rooted relationships within the lending marketplace. Our partners are lending institutions across the credit spectrum. We work with Banks, Specialty Finance Companies, Family Offices, and Private Equity groups. Our mission is to develop a path for companies and lenders to work with efficiency and transparency. As a liaison to our partners and clients, we think that all parties in a refinancing process can benefit from a well thought-out process. Our firm and our professionals deliver “Efficiency by way of transparency“.
debt-new
debt-new

About Our Debt Advisory Group

SMB Compass Debt Advisory Group focuses on advising companies by providing tailored financing options. As an independent firm, SMB moves efficiently through engagement and its advisors transact with the best interest of the client in mind. We are fully invested in finding the appropriate financing path for our clients. Founded by former lending professionals, SMB Compass has deep rooted relationships within the lending marketplace. Our partners are lending institutions across the credit spectrum. We work with Banks, Specialty Finance Companies, Family Offices, and Private Equity groups. Our mission is to develop a path for companies and lenders to work with efficiency and transparency. As a liaison to our partners and clients, we think that all parties in a refinancing process can benefit from a well thought-out process. Our firm and our professionals deliver “Efficiency by way of transparency“.
smb process

The SMB Process

SMB was founded with a purpose to provide entrepreneurs and businesses in numerous industries with a transparent and effective advisory tool to navigate through the challenges of a capital raise. Our advisors invest countless hours to work with clients to develop a strategy and process that best fits the particular situations of our clients. For us, our process all starts with our relationships. Our professionals have cultivated long-standing and deep relationships with partners and clients. We work with an exclusive yet robust channel of financing and lending relationships. Most debt raising processes are filled with gaps, friction points, and time absorbing tasks. For potential borrowers, the process can be a burden on the company. For lenders, there are risks in the amount of time and effort spent on any one transaction that may or may not lead to a closing. There’s an opportunity risk for one and all involved. Our methodology of “Efficiency by way of transparency” allows for a smooth financing process that attacks and removes all these gaps and friction points. Our approach and goal is to provide a thoughtful process to all parties involved in financing.

Our Clients

Our clients are Privately Owned or Sponsor Owned companies that are based in the U.S. The typical client we work with has a time sensitive financing need for a combination of multiple factors. See below a representative summary of who and what makes up our ideal client:

Client Characteristics:

  • Ownership
    • Private or Family Operated
    • 100% Sponsor Owned
  • Metrics
    • $5MM – $500MM in Revenues
    • $1MM-15MM in EBIDTA
    • Financing Needs between $1MM-25MM
  • Situations
    • High-growth
    • Turnaround
    • Change in Management or Partner Buyouts
    • In Workout or Seeking an exit with a lending institution
    • Acquisition

Our Lending Partners

Our lending partner’s platform is made up of a base of large and small institutions. On a nation-wide level we have distinct and deep rooted relationships with all of our lending partners. Our platform includes the following lending partners:

  • Banks
    • Regional and National Banks
    • Bank Groups
      • Business Banking
      • Commercial Lending
      • Asset Based Lending Groups
      • Middle Market Lending Groups
  • Family Offices
  • Hedge funds
  • SBA and USDA Lenders
    • Specialty Finance
      • Asset Based Lending Finance Companies
      • Factoring Companies
      • Purchase Order Funders
      • Bridge Lenders
      • Real Estate Lenders
      • BDC’s

Lending Solutions

SMB Compass is deeply rooted in the Commercial Finance space. With personal relationships and established partnerships, we provide sound market feedback and advice on what financing solutions work best for our clients. Our experience in structuring loans from $1MM up to $25MM enables us to provide broad and extensive financing options with an industry agnostic approach. We take control of the process and we aid in a historically cumbersome process for our clients. We seek to be a catalyst in the debt raising path and provide the clearest and most direct approach to successful closing of commercial loans. Through a refined and strategic approach we create operational and underwriting efficiencies for our clients and lending partners. SMB Compass helps clients structure and arrange credit facilities with expertise in the following structures:

  • First-Lien & Senior Secured Loans
    • Asset-based Loans
      • Accounts Receivable Financing
      • Revolving Lines of Credit
        • Collateralized by Accounts Receivable, Inventory or Machinery & Equipment
  • Term loans
    • SBA loans 7(a) and 504 & USDA Loans
    • Asset Based Term Loans
      • Collateralized by Machinery & Equipment, Owner Occupied Real Estate and Intellectual Property
  • Cash Flow Based Term loans
    • Unitranche Financing
  • Split-Lien and Second Lien Loans
    • Carve-out negotiations
    • Mezzanine
    • Junior Debt
    • Bridge Financing

Case Studies

  • Situation # 1
    • Food manufacturer with the following 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
  • Solution
    • SMB provided a refinancing option after spending time with the company to understand their situation and potential paths to a 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
  • Situation # 2
    • Specialty Pharmacy with the following characteristics:
    • Historically profitable and Cash Flowing business lost its largest customer
    • Unsophisticated Accounting and Finance systems
    • Bank was within formula but had concerns given the lack of reporting
    • They were unable to convert them to their ABL group
    • The company was in default for 18 months
  • Solution
    • SMB provided a refinancing option after spending time with the company to understand their situation and potential paths to a refinancing
    • Negotiated multiple subordinations with key suppliers
    • Negotiated interim line extension with an existing banking relationship
    • Refinancing took 75 days from start to finish
    • Paid off bank whole

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