SG Credit Profile: Cash Flow

The Company

An entrepreneur-owned specialty delivery service catering primarily to the medical industry.

The Financing Situation

The founder of the Company needed growth capital to fund an emerging but unrelated new venture. The founder had previously signed an LOI with another lender that re-traded key deal terms during diligence. Faced with immediate time constraints, the founder needed a new debt provider that could execute quickly and provide certainty to close.

The Solution

Although the new venture on its own could not yet support a debt facility, SG was able to mitigate this by underwriting the cash flows of the Company. Given the Company’s positive growth trend, diverse customer base, and historical cash flow, SG was able to provide substantial covenant flexibility and permitted growth capital advances to fund the new venture. SG closed within three (3) weeks of signed term sheet.