This company commenced operations in 1998 and specializes in crane operations and repairs, as well as rigging operations for commercial development, infrastructure, civil maintenance and port operations.
Because of two separate insurance incidents the company had posted losses for two consecutive years. As a result, they were unable to obtain financing for a new crane from either their bank or the crane vendor’s finance affiliate.
The customer required a new crane to take advantage of significant opportunities to expand its business. They placed an order for a new 300 ton All Terrain crane scheduled to be shipped in less than two weeks. When they approached their bank with this opportunity the bank refused to extend them additional credit based upon recent business losses resulting from two insurance claims asserted against the company. The company also approached the vendor’s finance affiliate for crane financing but was also rejected. The company needed help fast due to the imminent delivery of the equipment.
>> Download the case study to learn more about how this crane operator was able to purchase new equipment even after being turned down by the bank.
Initially the company was simply looking to fund their purchase of a 300 ton All Terrain crane at a cost of $1,820,000. But the company was also frustrated with their existing banking relationship. The bank had an existing term note with three cranes and a relationship that was deteriorating.
The company really needed a lender that would:
In meeting with the Company, CCG determined that the recent losses were not indicative of their long-term business history. CCG was able to offer an alternative transaction that would allow the company to complete the purchase of its new crane and refinance its existing equipment obligations. Furthermore, the recast of the existing loans would be cash flow neutral, and the equity in the existing equipment allowed for a lower down payment requirement for the new machine.
The new loan structure accomplished the following:
LET US HELP YOU FINANCE ALL YOUR EQUIPMENT NEEDS.
GET A PDF VERSION OF THIS STORY.