The Client

The company is a manufacturer of professional desktop binding, photo-binding machines and consumable products sold worldwide. In business for three decades, the company is the world leader and inventor of the tabletop machines that produce customized, professional quality bindings and hardcovers which has brought professional binding capabilities to the office environment. Their bind-on-demand technology is used by government and many fortune 500 companies.

The Situation

The client had significant capital and R&D expenditures associated with updating their antiquated product line, which impacted revenue sources. Their incumbent bank  was unwilling to provide additional working capital. After an aggressive turnaround effort, the company was seeking alternative financing to assist in attaining their immediate and long-term plans for growth.

The Solution

Business Capital was able to understand the complex nature of the client’s situation and financing needs to structure and secure a multi-layer credit facility comprised of Accounts Receivable, Inventory, EXIM (Export/Import), Real Estate and SBA facilities.  Business Capital executed the transaction quickly and at an affordable cost of capital, allowing them to achieve their future plans for growth.

“Business Capital provided welcome strategic insight, leadership and focus that enabled Powis Parker to  secure a cost-effective financial solution in this fragmented lending market. The pricing and structure of the credit facilities will assist us in attaining our immediate and long-term plan to grow the business. ”

Richard Heaps, Powis Parker President & CEO

The Company

A leader in cyber security and high-end network control solutions, the company has deployed its products in a wide range of environments.  Global customer base includes leading enterprise organizations, intelligence agencies, military organizations and service providers for applications in defense, surveillance, monitoring and flow analysis. The company is privately-held and is headquartered in the San Francisco Bay Area with office locations worldwide

The Situation

The company sold its software division to a private equity firm that contacted Business Capital to secure funding to bolster liquidity, complete the transaction and grow the hardware division. Financing was needed quickly, in the 15 day range.

The Solution

Faced with a challenging time frame, Business Capital quickly and was able to structure and deliver a credit facility based on accounts receivable. The new liquidity, will allow the company to close the sale and continue to grow.

The Client

The Company, founded in 2002, is a North Carolina based supplier of stone and granite products for the single and multifamily housing market that had been profiting greatly from the rapid growth in the housing market in the downtown Charlotte area and was planning on expanding geographically and introducing new products.

The Situation

In 2007, the Company was acquired by its current owners at a price and capital structure that reflected this optimistic outlook. The business was hit hard by the economic crisis and the resulting deterioration of the housing and construction industry. A brief partnership with Home Depot was derailed when that branch of the chain was shuttered. When Business Capital was introduced to the client, they were in financial distress and preparing to initiate bankruptcy proceedings.

The Solution

Business Capital successfully worked closely and efficiently with each of the company’s creditors, presented the facts and expedited the settlement process.  By dealing amicably and efficiently with the creditors, the process was fast and cost-effective. The restructuring reduced the company’s debt by over 80% and allowed them to pay their creditors and avoid a bankruptcy filing and losing all of their personal assets.

“It’s especially rewarding to help closely held family businesses. Our client was all in, with a $1.25MM second deed of trust on their personal residence. The loan was also guaranteed by the U.S. Small Business Administration, (SBA) which made the negotiations especially difficult and laborious and our client could not afford the administrative costs associated with a Chapter 11. We implemented our out-of-court restructuring plan which resulted in significant reductions in costs and delays.”

Chuck Doyle, Managing Director, Business Capital

Business Capital Delivers $2.5 Million Recapitalization & Acquisition Financing for California Wine Company

The Company

A multi-faceted California wine company engaged in purchasing, producing and distributing bulk wines to both domestic and international customers.  The Company actively resells bulk wine and blends, bottles and labels product for shipment at its facility located in the heart of California’s most important wine production region. With over 25 different labels, their products represent a broad range of variety and price. The company’s wine production exceeds 1 million bottles, with distribution throughout the US, Europe, Canada, Asia, and Latin American.  The founder, a 5^th generation Californian with more than 25 years in the wine business, is a well-known pioneer in the development of California wines outside the U.S.

The Situation

The company was experiencing a cash crunch due primarily to the loss of a key customer who filed bankruptcy. The company had an offer to purchase the distribution rights of a well-known wine label, but needed additional capital to do so.  Their current lender would not provide the financing to accommodate the purchase of the new bulk wine needed for process in order to allow the company to expand.

The Solution

Business Capital structured and secured an SBA line of credit which will serve to refinance an existing bank loan and provide the company with the additional working capital they need to execute on purchasing a distribution agreement and further their plans for growth.

“On behalf of the entire team at Sysorex, we are delighted with the way Business Capital navigated our leveraged buyout financing of Lilien Systems. Business Capital produced several options for financing, created competition among the interested funding sources and put Sysorex in a strong position to negotiate the best terms and conditions. They executed the transaction more quickly and at a lower cost of capital than expected. Business Capital was a pleasure to work with and produced great results and an intelligently structured credit facility,” said Nadir Ali, President of Sysorex Global Holdings Corp.

The business acquisition will increase service and product offerings, allowing Sysorex to expand their extensive government contracts with leading-edge solutions, including Big Data and analytics.

“In this highly selective lending environment, obtaining debt based financing in general and acquisition financing in particular continues to be a time consuming challenge for both the borrower and most banks or finance companies. We were extremely thorough in our evaluation of both companies and were able to uncover value beyond what was reported in the financial statements, which contributed to our ability to successfully arrange for the acquisition financing,” said Chuck Doyle, Managing Director of Business Capital.

Business Capital is a leading commercial finance and  debt restructuring firm specializing in arranging customized debt based financing solutions for rapidly growing as well as distressed small and middle market companies nationwide who require a unique, timely and tailored financing structure to address their particular needs. In situations where conventional capital sources are not an option, Business Capital has repeatedly delivered financial solutions to a broad assortment of private and public companies seeking additional liquidity.

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“On behalf of the entire team at Sysorex, we are delighted with the way Business Capital navigated our leveraged buyout financing of Lilien Systems. Business Capital produced several options for financing, created competition among the interested funding sources and put Sysorex in a strong position to negotiate the best terms and conditions. They executed the transaction more quickly and at a lower cost of capital than expected. Business Capital was a pleasure to work with and produced great results and an intelligently structured credit facility.” 

Nadir Ali, President of Sysorex Global Holdings Corp

The Client

The Company, Sysorex Global Holdings Corp. (SYRX), is a leading information technology solutions and services firm that delivers IT and solutions for domestic and international government agencies, and large corporations. Solutions range from custom applications development to commercial off-the-shelf services to a variety of system integration and project management services, as well as services for mission critical applications.

The Situation

The Company plans to expand and increase its depth of enterprise service offerings through a series of acquisitions. The initial target, Lilien LLC — an established commercial IT provider based in the US with over $40M in annual revenue, would provide the client premier partnerships with leading vendors in IT infrastructure, the ability to deliver Big Data services and advanced analytics and offer more competitive pricing for government opportunities. Both companies would benefit from the ability to bundle additional, complementary solutions, services and products.

The Solution

Business Capital quickly developed an understanding of the complexity of the client’s situation, the issues and opportunities and worked with a carefully selected lender to package a solution that was a combination of stock and cash from debt financing to complete the acquisition.

“In this highly selective lending environment, acquisition financing can be a challenge for most banks and funds. We were extremely thorough in our evaluation of both companies and were able to uncover value beyond that which was reported in the financial statements, which contributed to our ability to successfully secure smart capital for the Leveraged Buyout,” said Chuck Doyle, Managing Director of Business Capital.

Chuck Doyle, Managing Director, Business Capital

Business Capital Selected Transaction Highlights Q1 2013

San Francisco, CA/Westport, CT — Business Capital has provided close to $20M in financing and restructuring solutions for new clients during the first part of 2013.  A few recently closed financing transactions include, a $1,500,000 asset based line of credit for a manufacturer and distributor of industrial aluminum and plastic products throughout Asia and the U.S.; a $500,000 asset based line of credit to a transportation services company that is part of a larger industrial metal fabrication and powder coating company; and a $500,000 asset based line of credit to an aggregate supplier and construction trucking company.

“Each of our clients has a unique and often complex set of circumstances and challenges. In each case, we quickly develop an understanding of the situation and work with our funding partners to structure an optimal financing solution that is customized to meet their needs.” said Chuck Doyle, Managing Director of Business Capital.

Business Capital, founded in 2002, is a national commercial finance and debt restructuring firm specializing in business loans and creditor work-outs for small to middle market commercial and industrial companies. The firm has extensive experience recapitalizing and restructuring profitable companies, those undergoing hyper-growth, as well as those facing financial set-back requiring more working capital than their existing bank will provide.

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The Client

The company is a factory direct importer and distributor for leading manufacturers located throughout the Pacific Rim and also serves as the direct marketing center in the US for its own line of products.  The company provides manufacturing and distribution solutions for companies producing aluminum and plastics products and also manufactures its own line of woven plastics and packaging for  use in construction, farming, industrial and consumer products

The Situation

The Company has a history of profitability and growth, despite a slump in the overall engineered textiles industry after the economic crisis.  Due to rapid growth and a spike in sales, cash flow was negatively impacted during this period. The company found it was unable to carry inventory and offer terms necessary to keep up with demand or negotiate from a position of strength with several national distributors interested in their product.  They had been unable to find a lender willing to provide them with the needed capital.

The Solution

Business Capital quickly developed an understanding of the situation and worked with funding partners to successfully structure an optimal financing solution that met the client’s needs. A working capital line of credit based on their accounts receivables will enable the company to build inventory, increase production capabilities and take advantage of future growth opportunities.

The Client

The client, a transportation services business, is a subsidiary of a larger industrial machinery manufacturing company, primarily in the business of metal fabrication and powder coating from the engineering and design stage through the finished product for projects of all sizes. Based in Arizona, the client provides trucking and cargo delivery services.

The Situation

The parent company remained profitable but struggled after the economic crises and the transportation services subsidiary was in need of more working capital to continue to operate. The owner did not want to further leverage the assets of the manufacturing facility and other real estate, but the current lender was unable to provide an asset based line of credit.

The Solution

Business Capital developed an understanding of the client’s situation and was able to quickly deliver a line of credit to maximize working capital and liquidity. The client’s short term needs were addressed by leveraging A/R and avoiding the pledge of additional collateral or a personal guarantee. This solution will allow the transportation services business to continue to operate and increase the health of the company as a whole, setting them up to continue increasing profitability and growth.

The Client

The client, located in San Diego, is one of the fastest growing reliable aggregate supplier and construction trucking companies, operating a large fleet of trucks servicing primarily the Southern California area. The company specializes in the wholesale supply, hauling and delivery of a wide range of competitively priced aggregate, landscape and building materials and provides hazardous soil profiling, transport and disposal services.

The Situation

Although the company has a history of profitability and carries no bank debt, the downturn in the construction industry combined with the amount of time it takes to complete a project and get paid, created an increasing constraint on liquidity. Without cash flow, the company was unable to take advantage of a backlog of business and competitive pricing with their vendors, purchase new equipment or hire workers. Due to the industry and unreliability in AR, they had been unable to find a lender to provide them with the needed capital.

The Solution

Business Capital developed an understanding of the client’s situation and was able to deliver a line of credit to immediately maximize working capital and liquidity. The client’s short term needs were addressed, allowing them to clean up the payables, decrease financing costs, eliminate late charges and take advantage of early-pay discounts. Without the daily liquidity constraints, the client can focus on their long term business growth and profitability goals.