To position the organization for growth, this company made numerous investments in manufacturing and other revenue generating equipment over the course of 18 months. The total investment grew while the company also continued to get back to budget following the past year's drought. In order to start the new fiscal year off strong, executives began looking for ways to leverage those acquisitions and put cash back on the books. They wanted to look for alternatives to traditional bank lines of credit to eliminate the requirement for personal guarantees.
With the manufacturer's priorities in mind, we were able to create a customized solution to enhance its cash position. We provided a cash reimbursement for a combination of IT and production equipment purchased within the prior 18 months, including hydraulic bin dumpers, sprial conveyor belts, a CO2 system compressor, and a backup generator.
The solution was structured as a 36-month captial lease with a competitive, fixed rate and no fees.
Our solution allowed the client to spread the cost of the acquisitions over time and, with the company's additional cash flow, provided the ability to make other operational investments. The client also enjoyed the ease and flexibility of working with First American. Unlike other banks, we were able to complete the deal without requiring any personal guarantees. We also had the appetite to handle multiple asset types with different vendors and the ability to move the transaction quickly. This helped our client achieve its desired financial position before the start of its busy season.