Debt Financing
When your situation calls for a new or additional lending relationship, we can assist you in the process of securing business funding, by matching your needs with optimum financing alternatives.
Over the last twenty-five years, we’ve learned what financial institutions look for in a corporate borrower and how to best approach them when seeking a business loan.
Furthermore, we’ve developed relationships with a large network of lenders who trust our ability to provide accurate, reliable client analyses.
How We've Helped
Case Study: A Bank Prospect: A Burgeoning Business with no Financial Plan
$120 Million Cell Phone Wholesaler and Distributor
Solution
A high-net-worth individual started a turnkey cell phone wholesale and distribution company with three interconnecting companies. He self-funded the rapidly growing company with $10 million as the Company reached $40 million in annual revenue.
Confident about the upward trajectory of his business, the owner reached out to a Chicago-based bank to provide a working capital loan to fund the growth. However, to this point, the accounting was done “out of a shoebox” and there was no financial information supporting his working capital line request.
With a complicated turnkey business model that has thin margins, the Bank needed to gain comfort with the business and what the true capital need was.
The lender referred us to their prospect. We assessed the business and developed a financing memorandum that thoroughly explained the model and provided financial projections that mapped out the initial working capital need.
With a satisfactory comfort level, the Bank approved a less than maximum working capital line with the understanding of a six-month revisit to determine if additional capital was needed.
Sutker, then, developed processes and procedures to provide timely and accurate financial information to the owner and lender which led to formally becoming the Company’s Outside CFO and key member of the management team.
Now, a year-and-a-half since the start of our engagement, the Company’s current run rate is $120 million with a projected $2 million in net income with additional working capital support from its Lender.
Case Study: Finding a Lender Who Fits Better
$12 million Engineering Services Firm
Overview
An engineering-based, construction-related firm had a really bad year due to poor non-core investments and excess overhead as anticipated revenue did not materialize. On its own, the Company shed the investments and right-sized its operations to match its anticipated revenue. However, their lender, already adverse to construction-related companies, no longer wanted to bank them. Furthermore, their Controller resigned during this period.
Solution
Sutker took on the interim Controller tasks. Sutker also developed a comprehensive refinancing package that included a detailed financial analysis showing the Company’s path from an unprofitable year to its projected profitable year, as well as presented their upcoming working capital needs. Confident about the credibility of the Company’s plan, Sutker reached out to several lenders who were not averse to the construction industry as well as whose customer base and culture matched that of the Company. Sutker negotiated the lending agreement with the new lender on behalf of the Company.
Case Study: The Bank and The Company Working Together to Solve a Problem
$100 Million Trucking Company
Overview
A historically profitable $100+ million provider of temperature-sensitive transportation services lost a major customer. Coupled with the downturn of the oil and gas fracking industry, the Company had severe liquidity issues.
Solution
Through various financial analysis and working with the management team, $6.1 million in profit improvements were identified and implemented. Through negotiations with each secured lender, the annual principal and interest payments were reduced by $5.3 million or $442 thousand per month. The Combination of profit-enhancements and principal re-amortization provided sufficient liquidity and resulting profitability.
Case Study: The Controller’s resignation leads to the discovery of financial misstatements. Then, profit-enhancing actions.
Overview
When the Controller of a $11 million fabricator resigned, the Company’s lender referred Sutker Moran to ownership/management. Once hired as the Company’s CFO/Controller, Sutker performed a high-level review of the financial statements where they recognized liquidity was very tight, profitability was minimal, and inventory continued to rise.
Solution
Sutker began its onboarding process of reconciling every balance sheet account. During this process, Sutker identified a significant overstatement in inventory. The restated financial statements revealed the Company was losing money.
Sutker and management conducted a thorough analysis of the business resulting in $600,000 of profit enhancements that included position eliminations, insurance cost reductions, and reductions in discretionary expenses. Sutker further helped enhance liquidity by facilitating the restructuring of the Company’s bank term loan, saving $50 thousand per month.
Case Study: The Numbers Do Not Add Up
$65 Million Food & Beverage Distributor
Overview
A large middle-market Global Food & Beverage Distributor was reporting profits. However, it had no liquidity being tapped out on its line of credit facility and late on vendor payments. The accounts receivable and inventory balance grew significantly. Unhappy with their outsourced CFO, they terminated the firm.
Solution
Sutker Moran took over the outsourced CFO and Controller roles, diving into the financials and identifying gross mistakes and misrepresentations. As a result of providing the owners with a true, realistic financial picture that reflected significant operating losses, Sutker Moran collaborated with ownership and implemented a major restructuring based on their customer profitability analysis and their strategic zero-base analysis of expenses. With a return to strong, credible profitability, Sutker Moran succeeded in helping the Company obtain more conventional financing that provided sufficient working capital to fund the Company’s growth strategies. As the Company’s permanent outsourced CFO/Controller and management team member, Sutker Moran provides timely and accurate financial statements and analysis, manages cash, develops annual financial projections and interim financial forecasting, as well as recently assisted in the implementation of a new enterprise system.
