California Premium Home Furnishings Company Secures a $2.5MM Inventory Finance Facility; Worthy Lending LLC Joins Syndication

Worthy Lending LLC (WL) provided $1MM participating in a $2.5MM inventory finance facility for a west coast high-end home furnishings manufacturer/retailer. This well-established top-quality furniture can be found in showrooms located in Georgia, Illinois, Ohio, Texas, Colorado, Arizona, California, Florida, Nevada, New York, DC, and retail outlets in Europe. “The company has been providing high net worth individuals with the newest fashions in furniture featuring leading edge designs best suited for consumers having deep pockets. Along with other determining factors, 35 years of selling to satisfied customers, owning many proprietary brands and working with very generous margins, WL’s underwriting team gave the thumbs-up when offered the opportunity to participate in this syndication,” managing underwriter Fred Leder remarked.

Alan Jacobs, WL’s CEO commented; “this company is currently tidying up its financial picture, closing retail outlets that are marginally profitable or less, identifying and rectifying instances where there are duplication of responsibilities, outsourcing some of its manufacturing processes (generating substantial cost savings), all of which has eliminated about $1MM in expenses during Q1 of 2019.”

As many Asset Based Lenders benefit from borrowers that have unfortunately breached Bank loan covenants, this borrower had to seek an alternative form of finance reacting to their bank’s desire to terminate their existing loan facility. Most banks are not willing to offer a reasonable time frame for borrowers in breach of financial covenants, to reverse these deficiencies. This offers ABL lenders opportunities to provide financing facilities to “almost” bankable borrowers, currently in a financial clean up mode. WL frequently identifies this client profile and aggressively seeks to lend directly or participate in syndications.

Worthy Lending, LLC is a lender providing ABL structures incorporating multiple sources of collateral specializing in stand-alone inventory transactions. With a flexible approach to financing the needs of sector-diverse businesses, WL offers ABL facilities ranging in size form $300K up to $3MM, or higher in specific instances. As an additional product line, WL purchases participations with other lenders and does not seek the Lead position.

For additional information regarding Worthy Lending, LLC contact Alan Jacobs it’s CEO at (561) 288-8467 or by email at alan@worthylending.com.