Recent Fundings

This third generation business was in an industry was out of favor and its bank would not increase its bank lines. When its main competitor went into bankruptcy, this company wanted to purchase many of the competitor’s assets. The company knew it needed another financing source to accomplish this and through its accounting firm was referred to EGC. EGC repaid the existing bank and made additional loans to purchase inventory and equipment from the bankrupt company. Because of this adventurous purchase, the company will be the geographic dominant player in the industry. In order to support these purchases, which caused the client to go out of formula, the principals offered second mortgages on their homes.

This firm also had outgrown its existing bank line. EGC received this lead over the internet. The company was profitable, had retained earnings, but was growing too quickly, to get adequate bank financing. It was opening up locations in two other states. EGC started them with a $750,000 line but plans to increase that line when the other locations become operational.

EGC was introduced to this client two years previously by a former EGC client. At the time, the company chose to finance with a bank. The company was profitable and growing. However, due to a note payable due the former owner, the company was unable to increase its retained earnings. As the company grew, it required larger lines of credit, which it was unable to get from banks. EGC was able to finance the company and double its working capital.