Privately owned consumer debt collection agency.
The Financing Situation:
The Company needed capital quickly to move on opportunistic portfolio purchases as well as working capital cushion while collection curves ramped up.
SG was able to quickly get comfortable with the transaction due to the value of dedicated portfolio collateral as well as a strong personal guaranty from the owner. SG worked quickly to provide a $1.5MM funded ($2.5MM total) facility in a first lien position with interest-only payments. Closing timeframe was one week.
This transaction highlights SG’s ability to structure and underwrite collateral based / guarantor based loans. While many of you know us as a cash flow based lender, we now provide special situation (balance sheet) loans requiring creativity, flexibility, and speed to close. We also have a strong interest in providing customized solutions for illiquid high net worth entrepreneurs.