TSL Express Daily News
The Secured Lender
SFNet's The 81st Annual Convention Issue
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Top 5 Apps for Organizing
Mar 7, 2019If you’re like most of us, we try to stay organized in business and life, but it gets increasingly complicated…
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The Importance of Stretching
Mar 7, 2019Every personal trainer and athletic coach I have ever worked with has stressed the importance of stretching. When working out…
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SFNet's 40 Under 40 Award Winners Panel Recap
Mar 6, 2019Moderator: Samantha Alexander, regional underwriting manager, Wells Fargo Capital Finance’s Corporate Asset Based Lending group and 2016 CFA 40 Under…
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SFNet's Inaugural YoPro Leadership Summit
Mar 6, 2019The Secured Finance Network brought together the next generation of commercial finance leaders for a full day of learning and…
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It’s a Marathon, Not a Sprint
Aug 22, 2018I was recently invited to participate in an executive panel to answer questions from a credit training class comprised of...
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It’s Not Too Late – Five Member Benefits to Cash In On Now
Aug 1, 2018As we hit the half way mark on calendar year 2018, it is a good time to take stock and…
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It’s Time To Break Up With Your Phone
Jul 18, 2018Do I have your attention? Let’s be honest here: do you have the attention span to read this article? Compared…
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Lien Management – What You Need to Know
Jun 6, 2018UCC filing is the cornerstone of all loans and every lien portfolio...
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Potential Impacts of Blockchain on Commercial Lending
Jan 15, 2018By Raja Sengupta, Executive Vice President and General Manager, Wolters Kluwer’s Lien Solutions When it comes to the rising importance…
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How to be a Good Leader
Dec 5, 2017I know what you’re thinking…another article about how to be a good leader? The short answer is yes…but this time,…
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Fintech and Due Diligence – Disruptors and Established Firms Evolve
Oct 30, 2017The fintech sector has gone through a number of manifestations in the past two decades.
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A Commercial Banker’s Tickler Transition Plan
Oct 18, 2017Just do a keyword search for “bank tickler,” and you’ll quickly realize that banks are still heavily reliant on manual…
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Understanding and Developing Your Personal Brand: Four Steps to a More Intentional Career Progression
Sep 5, 2017It is imperative for individuals to have a general idea about their future career aspirations, just as companies should have clearly defined strategies.
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Selecting a Technology Vendor: 3 Questions to Ask
Jul 5, 2017As with anything else at your bank, selecting a technology vendor can be a challenging decision. Users from across different…
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Why Back-Office Lending Automation Enhances Customer Satisfaction
Apr 25, 2017Every bank strives to keep its customers happy. Of course, some institutions are better at achieving this goal than…
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The Lost Art of the Loan Purchase
Mar 2, 2017Purchasing a loan directly from a bank whether at par or discount is a not-often-used technique that is easily…
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Audit Prep: Why a Paperless Approach Makes Sense
Feb 15, 2017How much time does your financial institution spend preparing for audits? We recently surveyed 187 community banks, and the results…
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Back Office Support Services: Helping you approve more clients
Feb 7, 2017How many times have you come across a potential client who’s financials are either not up to date, not accurate,…
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“All Assets” is the Key When Drafting UCC-1 Financing Statement Collateral Descriptions
Jan 30, 2017Even when prepared by outside or in-house counsel, many lenders pay close attention to draft UCC financing statements before they…
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Paper Loan Files: Does Your Bank Know the True Cost?
Jan 12, 2017Sure, there’s a tangible cost associated with deploying an electronic loan imaging system. Software, support, and scanning hardware are just…
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October 30, 2023
Source: Flatbay Capital
Flatbay Capital is excited to announce the successful funding of a $2.5 million owner-occupied commercial real estate bridge loan for a family-owned fabricator and supplier of HVAC ductwork.
Collateral: Warehouse
This company primarily serves the commercial market, specializing in partnerships with general contractors who are involved in multifamily residential developments and school districts. Their commitment to delivering customized HVAC ducting solutions tailored to each project has set them apart in the industry. Operating in the Texas market, they have remained exceptionally busy, primarily due to the local climate's demand for air conditioning systems.
The Situation?
The COVID-19 pandemic caused significant delays in the company's large-scale projects, resulting in increased costs of goods sold for metal, which could not be promptly passed on to clients. Furthermore, payroll obligations were not reduced at a fast enough pace to match the project delays. However, over the past year, the company has implemented several efficiencies and improvements. These include right-sizing their SG&A overhead, successfully renegotiating material costs, and introducing contracts with material escalation cost language to mitigate the risk of raw material cost fluctuations.
A Cool Solution!
These operational enhancements ensure that each project bid will now yield improved profitability, doubling the gross profit margin and reducing losses. The company is projected to return to quarterly profitability in Q2 2024. Flatbay Capital believes that this opportunity will assist this historically profitable business in regaining its financial stability within the next 24-36 months. The funds from this bridge loan were used to pay off the current bank loan, with the remaining balance available for general working capital needs.
Quote: Managing Partner Elliot Smith states “When we were referred this opportunity from a CPA firm we immediately knew that we could help. Our flexible CRE loan solution will give them the capital and time they need in order to grow their business once again.”
Flatbay Capital LLC specializes in non-bank commercial real estate loans/lines $1MM+ secured with owner-occupied commercial real estate.
