A bank-owned asset based lending firm in Texas approached Change Capital seeking help with a growing client of theirs. The client is a specialized healthcare IT firm which provides fully integrated services to synergize claims and inventory workflows, operations, audit and enterprise reporting and more. Their customers range from start-ups to Fortune 500 companies and include payors and providers; primary care providers, third-party services and all points in-between.
The asset based lender had become concerned when they realized that an expensive merchant cash advance (MCA) lender had secured a 1st lien position ahead of them, thus jeopardizing their security interest in the borrower’s assets and great impinging on their cash flow.
Change Capital stepped in and worked creatively with the senior lender and their client to provide a $550,000 refinance of the MCA balance. Change enabled the ABL lender to slide into the senior secured lien position they required and Change Capital subordinated its facility to the senior lender. The debt service savings and deal structure were also dramatically improved for the client. Change provided extended repayment terms and a scaled payment structure to help the company maximize the funds to grow its business.
About Change Capital:
Change Capital provides creative, flexible, and timely capital solutions to small and medium businesses across the country.
Change Capital’s solutions include:
- Interim working capital to improve a business’ financial condition in preparation for bank/non-bank financing
- Contingent capital availability to take advantage of preferential purchasing or investment opportunities, execute on large or unexpected customer contracts and purchase orders, accelerate growth and expansion opportunities, buyout equity partners, provide liquidity to private equity owners, etc.
- Bridges to 3rd party financing, M&A or other liquidity events
- Subordinated stretch pieces and over-advances in conjunction with senior institutional lenders
Interested parties may contact: firstname.lastname@example.org