A manufacturer of electronics security devices was newly acquired and had just raised substantial equity. The company had recently endured operating losses. It was pressed to comply with existing financial covenants and still meet the demands of their capital budget requirements. They needed an experienced partner with knowledge of leasing structures to help them fulfill the operating agreements with their bank and comply with the financial the covenants placed on the existing debt. The company’s executives believed they were currently not able to get financing solely based on the equipment value , without a new—and expensive— change of financial backers. The client did not want to incur any large, one-time payments for new equipment and was looking for ways to lock in longer terms for asset purchases.
OneSource Financial worked with the CFO to fully understand the company’s financial situation. The restrictions and covenants of the lending agreements in place at the time were the principal concern. Working closely with the client’s financial management team, we were able to justify the equipment purchases and demonstrated how those purchases would support growth and improve efficiency. OneSource analyzed the client’s market and how it was served by the products and services that the client provided. Once the marketplace was understood and the growth of the company could be better projected, we were able make a convincing case with our credit staff so they could stand behind the transactions.
OneSource Financial performed where others could not. By understanding the challenge from the client’s point of view, we were able to present the problem from a more strategic perspective. With the exception of the secured bank lenders or equity fund-raising, OneSource was the only independent finance source able to help fund equipment needs. Over $3 million of hard and soft costs were funded under various lease structures that mirrored the compliance guidelines set by other creditors and equity sources. The company continues to work with OneSource as their financial picture improves, appreciative of how our consultative approach to equipment finance continues to add value.