2022 has been a challenging year for Lower Middle Market businesses with continually rising rates and banks significantly tightening their underwriting standards. Fortunately, alternative lenders are generally flush with capital and credit lines raised in previous years and are as eager as ever to lend, albeit at higher rates. We are seeing evidence of this dynamic in a sampling of recent transactions where we had an integral role in the origination, closing, and funding of the following business loans:
$2.0 mm Accounts Receivable Based Line of Credit
A rapidly growing advertising agency needed additional working capital to support their growth at the same time their clients began stretching out payments. Morewood arranged financing backed by the agency’s receivables.
$1.4 mm Equipment Loan
An industrial business with significant losses and weak credit needed working capital to add a new line of products. Morewood arranged financing backed solely by the value of the company’s existing equipment with no corporate credit underwriting.
$750k Revolving Line of Credit
Consumer product company experienced temporary losses based on supply chain issues. Morewood identified a lender that was able to look past the losses and underwrite to the medium-term improved outlook.
$700k IT Hardware/Software Loan
USA based business unable to access capital as the owner is not a US citizen/green card holder. Morewood arranged financing of the company’s IT Hardware and Software expenditures, notwithstanding the citizenship/green card issue.
Morewood Funding helps businesses access non-dilutive capital by leveraging their accounts receivable, inventory, equipment, purchase orders, real estate, revenue, or other assets. Average loan size ranges from $500k - $5mm. Our independent approach enables us to work with multiple lenders-- resulting in flexible, creative, non-dilutive funding in a timely manner.
If you are a business or work with a business in need of capital, please call or email us at 917 561 7074 or Howard@MorewoodFunding.com
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