Easing a weekly repayment without unwinding the existing facility
Mid-term with another lender and a payout figure not worth clearing. The problem was the cadence, not the debt.
- Business
- Regional freight operator
- Amount
- $12,000 per week
- Product
- Reverse loan
- Funded in
- Same day
The challenge
A seven-truck freight operator was five months into a twelve-month facility with another lender. The rate was reasonable and the relationship was good, but the weekly repayment had been sized against a stronger quarter than the one they were in.
Clearing the facility early would have cost more than it saved. Refinancing it would have meant breaking a lender relationship they wanted to keep.
The solution
We ran a reverse loan alongside the existing facility. Each week we advanced enough to cover that lender’s repayment plus a working capital margin.
The original facility ran to term untouched and the existing lender was unaffected. Our facility was sized on turnover and repaid on the same weekly cycle.
Why the deal worked
The business was not over-levered. It was mismatched on timing, and a consolidation would have solved a problem it did not have while creating a break cost it could not justify.
Reverse structures exist for exactly this position, where the debt is fine and the week is not.
The outcome
The operator traded through the quarter without missing a repayment to either lender. The original facility ran to term and closed on schedule.
They consolidated with us afterwards, once the break cost was gone.
Weekly repayments squeezing you?
We can run alongside your current lender rather than replacing them.