This was an old time EGC client that had paid EGC off in 2006 with bank financing.   The former client was given an opportunity to purchase the building adjacent to it if it could close in 30 days.  Although it had a good relationship with its bank, and its financial performance was excellent, there was no way the bank would be able to provide the mortgage within 30 days.  Even though EGC rarely does stand alone real estate deals, because of the long standing relationship, EGC was able to provide the loan, and the client was able to purchase the building at a bargain price.

This distributor of construction related products was referred to EGC by an existing client.  Its long time bank had asked it to leave due to losses incurred in 2009.  Although management had turned the company around, no banks were interested.  The company was solicited by most of the asset based lenders in the Northeast but chose EGC because of its competitive rates, and creative formula for availability.  Indeed, because so much of its inventory was pre-sold, EGC was able to treat most of it as if it were a “bill and hold” receivable, increasing the inventory availability.

This IT staffing business was growing but profits were constrained by paying its factor a high cost for funding.  EGC paid off the factor and was able to increase the advance rate so that the company could further increase its sales.  This company also had a line of credit with a bank so EGC had to enter into an intercreditor agreement that was mutually acceptable.

This company was a spin off.  As such, it was considered too new for bank financing.  Additionally, because the company was venture backed, there were no personal guaranties.  By focusing on the previous company’s performance, EGC was able to offer a line of credit to a virtual start up.

This was a returning client that had a new business.  He was selling household products that were only to be sold during the winter season. Because of the short term nature, he was reluctant to enter into any long term financing.  Instead, he chose a factoring option that gave him the liquidity to fulfill his purchase orders and not have any long term financing obligations.

This processor was getting a steady stream of commission income known as residuals.
However, the company was expanding its product line and needed some working capital.  They found out that although they had been in business for several years and had always been profitable, no bank would lend against residuals.  Since EGC understands the credit card industry, we were able to monetize the residual stream using a term loan.  This was able to create the liquidity for the company to expand its product line, increasing both sales and profitability.

This company came to EGC with a tax issue.  It had never financed before and had recently fallen behind on its taxes.  Because it was waiting on several hundred thousand of receivables, EGC suggested that it factor its receivables to get current on its taxes.  The goal was to finance the receivables for a short period of time until the cash flow caught up.  The company was self financing again in 6 months.

This third generation printer hired a turnaround consultant to get itself back to profitability. Among the action items he focused on was look to replace the high rate factor that the printer had turned to upon exiting its long time bank.  EGC was able to offer more availability against the A/R and significantly reduce the cost of funding.

This finance company had been in business for two years.  Because it was in the merchant cash advance business, no bank was interested in offering a line of credit.  With EGC’s experience in this industry, it was able to offer a line that was competitively priced and able to grow with the company.

This company is owned by private equity.  When it did not meet its budget for the second straight year, its long time bank asked it to leave.  The company was also consolidating three different manufacturing plants across the country so was going to continue experiencing losses.  In order to pay off the bank in full, EGC was able to extend availability against inventory and a $1 million term loan against equipment.

This money manager had hired a large team and built out high end office space in anticipation of considerably increasing its assets under management.  In the meantime, it found itself in a tight cash position.  EGC was able to lend against future management fees so the fund could meet its present obligations and focus on investing and money raising.

This company was a turnaround that was purchased by an investor group.  Management had yet to meet its goals and was not only asked to leave its bank, but was given a firm deadline.  Although they were introduced to EGC with only two weeks to go before the deadline (and around the holiday season), EGC was able to repay the bank in full and explore ways of increasing availability, all in two weeks.

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.

This retailer of ski equipment was getting ready for its busy season. Although it was not expanding its locations, it was expecting its revenue to increase. It had a new private label product line that it needed to bring in from the Far East. Its existing bank lines were at their maximum and time was of the essence. Through our affiliate, Credit Cash LLC (www.credit-cash.com) we provided a term loan with a 6 month duration to track the heavy sales season.

This manufacturer was also introduced to EGC through its turnaround professional. Its restructuring was almost complete, but its original bank would not change its decision. Nor could it attract other traditional banks as the majority owner was inactive and would not sign personally. Additionally, the customer base had a large concentration and about 25% of sales were to foreign companies. On top of this, it was in a highly cyclical business and an economic rebound was not imminent. EGC was able to get comfortable with management, the customers, and the balance sheet and provide a larger line than it had previously.

This printer became known to EGC from its outside turnaround professional. EGC had worked with him on another client that was in bankruptcy and was able to emerge and prosper. The printer needed some help with reducing costs and improving cashflow. The turnaround consultant was confident in the company’s prospects. Although it had both bank lines and a factoring relationship in the past, it looked to EGC when it required DIP financing.

This company was a start up, or more appropriately, a restart. The principal had liquidated his last company with all creditors being paid. He changed his business model to reduce overhead and was soliciting a new factoring relationship. It was originally going to go with another factoring firm, however, after over a month of negotiating, the factor declined to go forward. This left the company in a tight spot as they had made commitments based on the anticipated financing. They approached EGC with an urgent need. EGC was able to close the transaction in a week. Once the company gets its volume up to over $100,000 per month, EGC expects to offer it a receivable financing contract.

This company provides investigative services to the legal industry. Their invoices were large, and their customers were slow to pay. They were backed by a private equity firm that was known to EGC through another of its investments. Unable to put more money into the company, the private equity firm sought out EGC to help with a very uneven cash flow. The company now uses EGC on an as needed basis. They are under no long term obligation to factor invoices, thus they only do so when they have a need.

This client was also asked to leave from its long standing bank. It had losses in both 2008 and 2009 and was now left with a deficit net worth. Management had turned the company around, however, due to a large concentration; it was having a difficult time finding a new lender. EGC took some real estate as back up collateral and was able to offer a 50% concentration cap on its largest customer.

One partner wanted to buyout another in this successful chain of independently labeled gas stations. Although the company had a long track record of growth and profitability, banks would not finance the buyout. Through EGC’s affiliate, Credit Cash LLC we were able to assist the partners with an 18 month term loan.

This company was also a return client. The company had two divisions, one retail, and the other wholesale. The retail side had borrowed several times from EGC’s affiliate, Credit Cash LLC. As the wholesale business began to grow, its bank refused to increase its lines and the company decided to go with EGC. As it turned out, this holiday season has twice the orders as last year, making its financing decision a wise one, and its year, a very profitable one.

This company provides consulting services to the environmental testing industry. They were a client of EGC’s for 3 years but left to go to a bank in 2007. Although the company was growing profitably, the bank would not increase its lines. With some big projects ahead, the company thought it best to switch from its current lender to EGC. They knew EGC would grow with them and despite paying a bit more, the result would be a far larger and more profitable company.

Through EGC’s affiliate, Credit Cash LLLC we were able to help this young retailer continue its expansion plans. It had leases in several airports and needed additional funding to support its construction time table. We provided a 12 month term loan on a timely basis and were subordinated to the senior lender.

This IT staffing company had a tough 2008 with sales down over 30%. While right sizing the company in 2009, its bank asked it to find a new lender. EGC competed against 6 different non bank asset based lenders to win this relationship. Although most lenders were offering approximately similar availability and pricing, the client chose EGC because of its long standing reputation, flexibility and direct communications with senior management.

This manufacturer of video screens sold one if its larger divisions and the remaining company was too small for its current lender. When asked to leave, it accepted a proposal from another bank. When the new bank began to modify its terms, the company lost confidence in the bank’s ability to close and sought an alternative lender. Although it only owed its existing lender $2 million, EGC was able to provide additional liquidity and even provide a term loan against real estate.

This IT staffing company was growing quickly. It also had plans to sell itself. It was looking for a flexible form of financing that would meet its working capital needs until the sale closed. The company had an absentee owner and had no assets other than its accounts receivable. EGC offered it a factoring contract with no minimums or long term requirement. It turned out that the sale was delayed and a 3 month relationship lasted far longer. Additionally, the principal was able to start another company without breaking its non-compete. This new company is also financing with EGC.