Use the Equity in your Real Estate to Quickly Generate Working Capital for your Business
Real Estate Term Loans
- Loan sizes $1MM to $15MM
- Collateral-focused underwriting
- Commercial property must be owner-occupied
- Property located anywhere in the U.S.
- Property types include, but are not limited to, manufacturing, office, office/warehouse and distribution
- Three-year balloon note with payments based on a 20 to 25-year amortization
- Monthly payments
- Little to no financial covenants
- Can be combined with a real estate revolving line of credit
Real Estate Revolving Lines of Credit
- Must be combined with a real estate term loan
- Revolving loan size is limited to a percentage of the real estate term loan
- Interest-only monthly payments
- Borrower when you need it with up to two to three draws per month
- Interest charged only on the amount outstanding
- Ability to prepay without penalty
- Best used to accommodate fluctuating working capital needs
Funded Deals
Specialty Coatings Company
$14MM Term Loan
Texas
Not only was the company asked by its lender to pay off its existing real estate loan, it also was in need of working capital for growth. Rather than utilize its more expensive factoring line of credit, the company opted to utilize the equity in its real estate that had built up over the years to address its working capital needs. Despite having a substantial backlog for its services, the company’s industry and lack of recent profitability kept traditional bank lenders away. By recognizing the opportunities that lie ahead of them, Briar Capital became the company’s financing partner of choice.
Seafood Processor & Distributor
$2.6MM Term Loan
New York
Referred into this transaction by a National Asset-Based Lender, Briar Capital was able to provide a real estate term loan solution for this Seafood Processor & Distributor based in New York. Unable to obtain traditional financing due to its troubled balance sheet, this company sought a lender to look beyond its current cash flow and instead at its real estate collateral and business opportunity ahead of them. Using an asset-based approach, Briar Capital leveraged the company’s real estate to provide them with much needed working capital. The newly created funds paid off an existing SBA loan, retired multiple expensive merchant cash advance facilities, and injected liquidity into the borrower’s business to address day-to-day cash flow needs. Additionally, the use of a long-term amortization and a competitive interest rate helped to ensure the company could service the new debt for years to come.
Product Research Company
$6.735MM Term Loan
Illinois & California
As a result of several large customer research budget-spending freezes and multiple customer consolidations, this company experienced a significant decline in revenue. After adjusting expenses to better align with its lower revenues, this 50+ year old business brought in a turnaround consultant to help them address its failing banking relationship. Having busted multiple loan covenants they found themselves in default under multiple loan agreements and with a bank that wanted out of the relationship. With a weakened balance sheet and tight cash flow, the company's turnaround consultant turned to Briar Capital for help refinancing the company’s properties in Illinois and California while bringing in a national asset-based lender to finance the company’s A/R. Both Briar Capital and the national ABL lender coordinated their efforts and were able to close simultaneously to pay off the incumbent bank. With the covenant free loan structure provided by Briar Capital, the company was able to focus on its business as opposed to conforming to a list of financial covenants imposed by traditional banks.
Aircraft Parts & Equipment Distributor
$2.252MM Term Loan
Indiana
Following a worldwide shift in the supply of airplane spare parts, this company's sales quickly declined over 35%. Additionally, the inventory shift forced the company to write down its inventory by a significant amount to more accurately reflect the net realizable value. As a result, the company's long-time bank placed them in default and asked them to seek alternative financing for their real estate term loan. After a successful introduction by their existing banker, Briar Capital quickly stepped in to document a new real estate loan facility to accommodate the bank’s wish to exit the relationship. With a collateral based approach, Briar Capital was able to overlook the company's recent financial performance challenges and provide a covenant free, payment friendly term loan solution using the equity in the company’s owner-occupied office/warehouse facilities.
Toy Manufacturer
$6.75MM Term Loan
Pennsylvania
The COVID Pandemic had created challenges with the company’s retail distribution network as many of the stores supplying their product experienced closures, some permanently. The store closings resulted in declining orders, which had a substantial effect on the company's bottom line. Their existing Bank decided they no longer fit their customer profile and asked the toy manufacturer to move the relationship. A national, Bank-Owned Asset Based Lender stepped in to provide the revolving line of credit who quickly called Briar Capital to finance the company’s real estate assets. Briar Capital and the new working capital lender closed their respective facilities simultaneously to pay off the incumbent Bank who had a lien on all assets. The simultaneous closure of both loan facilities went off without a hitch due to excellent communication between both lenders.
Oil Country Tubular Goods Business
$12.023MM Term Loan
Texas
This Briar Capital real estate loan facility consisted of two term loans, $10.06MM 1st lien and $1.963MM 2nd lien, secured by multiple owner-occupied properties in Texas. These loans were the main financing component of the company’s Chapter 11 Reorganization Plan used to exit bankruptcy. Briar was brought into this transaction by a prominent investment banking team whom they had worked with in the past. That team felt Briar was uniquely positioned for this challenging credit due to its expertise financing large real estate transactions, ability to work well with other lenders in the capital stack and experience financing companies in Chapter 11. While providing most of the funds used for the company’s successful exit from bankruptcy, the Briar real estate facility was paired with loans from other lenders who financed the accounts receivable and inventory assets. Working diligently alongside these lenders and the investment banking firm, Briar was able to meet the company’s end of year deadline to close and satisfy specific requirements of their secured creditors. Free from the confines of Chapter 11 and with stable lending partners by its side, this OCTG services company was poised for growth in the coming years.
Aerospace Component Manufacturer
$6MM Term Loan
Florida
Like most in the aerospace industry, this companies’ business came to a halt as many of their longtime customers stopped awarding new contracts due to the COVID pandemic. This led to a significant backlog of business as work piled up in the form of unawarded contracts. With COVID in the rearview mirror, this backlog suddenly resulted in a record number of bids as customers quickly looked to increase the overall readiness of their fleets. Finding themselves in default with their incumbent lender given their sharp decline in financial results, this company lacked the significant funds to address this rapid growth in new business. After looking at all their options, they decided to re-leverage their assets for the much-needed liquidity. Briar Capital was first introduced to the company by multiple asset-based lenders considering a refinance of the working capital assets. While the ABL’s determined the working capital LOC need was not a fit for them, the responsibility fell to Briar to generate the liquidity from the company’s owner-occupied real estate. Using an aggressive LTV, Briar was able to unlock the equity in the property while structuring a loan facility with a cash flow friendly, long-term amortization to provide them with the working capital they needed.
Custom Vehicle Outfitter
$1.6MM Term Loan
Texas
Faced with cash flow issues due to a large, slow-paying contract with its largest customer and greater than expected start-up costs resulting from a joint venture, this company sought to tap into its real estate equity and refinance its property. Its bank said no, Briar Capital was introduced and within very little time funded the loan creating the liquidity the borrower needed to cover its losses under the bad contract and retire delinquent property taxes that had accumulated due to cash flow struggles.
Oil / Gas Component Manufacturer
$1.35MM Term Loan
Texas
After spending its own cash to acquire an adjacent property, the company sought funds to improve the newly purchased property with additional office and warehouse space. Given the slowdown in their business, not a single traditional lender was interested in providing the company the financing they were looking for. Soon after being introduced, Briar Capital made the company a loan secured by its existing commercial owner-occupied property and the value of the adjacent land to help generate sufficient funds to cover the buildout costs and additional working capital they needed.
Contract Manufacturer
$750k Term Loan / $250k Revolving Line of Credit
Texas
Looking to diversify a portion of its business away from the oil and gas industry, this company sought new lines of work and with that, access to working capital. As the company shifted a segment of its business model to other industries, Briar Capital structured its loan facility to provide immediate funds via a term loan while allowing the company to access additional funds, if needed, in the form of a revolving line of credit. Briar’s help allowed the company to make its transition and diversify the business.
Contract Manufacturer
$4.35MM Term Loan
North Carolina
The merger of two regional banks created a situation where the purchasing bank no longer desired the borrowers’ lending relationship in their portfolio. Seeking a quick exit, a national Asset-Based Lender was called to provide the revolving line of credit who then contacted Briar Capital to consider funding a real estate loan on the borrowers unencumbered, owner-occupied real estate. The Briar Capital real estate loan coupled with new equity from the owner helped retire the bank debt allowing the company to quickly exit the tenuous relationship and afford them time to obtain a new asset-based revolving line of credit.
Precast Concrete Company
$7.9MM Term Loan
Florida
After dealing with supply chain issues and material shortages because of COVID, this business was pressured to leave by their bank. After the bank began to rapidly amortize their debt, the company engaged a financial advisor to help them find a new lender. With a variety of assets to pledge for the loan, the advisor contacted not only Briar Capital for the real estate but several other lenders as well. While specific attributes of the company’s A/R (progress bills and retainage) made it challenging for traditional working capital lenders to finance the business, the company chose Briar Capital to leverage their real estate assets using a long-term amortization and personal recourse free loan. Briar Capital was able to not only provide sufficient funding to retire the bank debt but the equity in the real estate allowed Briar Capital to generate additional liquidity for the company. Those much-needed additional funds have been used successfully to help address the company’s significant backlog and other working capital needs.
Precision Cutting Tools Manufacturer
$1MM Term Loan
Michigan
After a rough 2019 which saw them lose considerable market share, the pandemic happened which brought this cutting tool business to a screeching halt. While others in their industry did not, this company adapted and successfully navigated the COVID waters only to be dealt with another blow just as they were beginning to see the light at the end of the proverbial tunnel. Their bank of over 20 years wanted to exit their loan and asked them to find a new mortgage lender. Briar Capital was introduced to this business by a traditional asset-based lender who, like most, prefers lending on assets like accounts receivable and inventory to that of real estate. Aware of Briar’s unique appetite for real property, this ABL lender understood Briar was the obvious choice to assist this Michigan company. Within days of its introduction, Briar issued a financing proposal and in a few short weeks after that, closed a real estate term facility to replace the incumbent bank. With a stable and patient lending source at their side, this company can now concentrate on its business and get back to what made it successful for over 50 years, servicing their customers.
Sheet Metal Component Manufacturer
$5.6MM Term Loan
Ohio
After busting certain financial covenants in its bank lending facility, this business was introduced to Briar by a highly professional turnaround consultant based in the Midwest. Needing a more patient financing alternative than that of a bank, Briar was brought in as the real estate lender and paired with a leading asset-based lender who provided a working capital facility and an equipment term loan. The joint financing solution not only replaced the incumbent bank who was seeking an exit but provided much needed liquidity to support the company’s anticipated growth and to help satisfy multiple related party transactions.
Industrial Tool Supplier
$10.8MM Term Loan
Georgia
The business was referred to Briar Capital by the company’s asset-based working capital lender after they learned the borrowers existing mortgage holder, a large regional bank, desired to exit the relationship. Given the company’s recent financial performance, the ABL lender knew another bank was not the solution and instead needed a real estate-focused asset-based lender like Briar Capital. Not only did Briar’s mortgage refinance the bank’s real estate loan, but it created an excess of funds which were used to help address a related personal obligation of the owners and satisfy past due payables within the business.