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
Specialty Coatings Company
$14MM Term Loan
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.
Heavy Industrial Fabricator
$9.5MM Term Loan
This company faced two challenges: it was under pressure from the incumbent bank’s loan workout department to move their loans and it lacked sufficient working capital to manage its ongoing obligations. The company’s problems began after two of its largest customers failed to pay them on large, multimillion-dollar jobs. Despite heavy losses at the time, Briar Capital was able to refinance the company’s real estate and allow them to tap into its real estate equity. Briar not only provided a more patient source of capital than the bank, but the new-found access to working capital allowed the company to ride the ups and downs associated with the oil and gas industry.
Commercial Shelving Wholesaler
$4.75MM Term Loan
Struggling to make payments on its existing hard money loan, the company sought out a new real estate lender to lower its monthly interest payments. Having already reached an agreement to sell its commercial real estate, the company also needed payment relief while the property was re-zoned to satisfy the terms of the purchase contract. Briar Capital’s loan became the bridge the property owner needed to sell its real estate and realize its appreciation in value.
$3MM Term Loan
With years of substantial research and development costs behind them, this company received approval to move forward with production under a large government contract. Without traditional banking options available to them due to historical and projected losses for the next 9-12 months, an intermediary brought in Briar Capital to finance the company’s real estate while an asset-based lender financed its working capital assets. Collaborating with the asset-based lender, Briar Capital leveraged the company’s real estate to generate ample liquidity which allowed the ABL lender to conservatively advance on collateral without exceeding its comfort level. Under this financing relationship, the company secured access to working capital to effectively operate its business.
Paper Goods Manufacturer
$2.9MM Term Loan / Revolving Line of Credit
After receiving a very large, seasonal order from a major industry player, this company with historical losses had difficulty finding a lender to provide the financing needed to fill the order. Briar Capital looked past the company’s past P&L struggles, leveraged its real estate and structured a loan with enough flexibility to accommodate the seasonality of the business.
Container Transportation / Storage Company
$2.55MM Term Loan / $250k Revolving Line of Credit
To its dismay, this company was forced to continually turn away customers due to its internal real estate constraints. Located near the port, the company was confident that with the right capital improvements to its facility, it could accommodate its existing customer base, handle the increased demand for its container services and expand the business. After being turned down by several banks, the company was introduced to Briar Capital via a financing broker. Briar was able to refinance the current debt on the property and provide the business a small revolving line of credit, all secured by real estate, to complete the desired property improvements.
Retail Fixtures Company
$2.2MM Term Loan
Briar Capital was called into the transaction by a traditional asset-based lender which was competing for the company’s revolving line of credit secured by accounts receivable and inventory. Due to a heavy inventory advance by the incumbent lender, the company was out of formula on its borrowing base and the asset-based lender needed a solution to its shortfall. Briar Capital was brought in to leverage the company’s real estate in order to generate liquidity that could be used to bring the traditional RLOC back in formula and create sufficient availability to close the asset-based lender’s new loan.
Custom Vehicle Outfitter
$1.6MM Term Loan
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
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.
$750k Term Loan / $250k Revolving Line of Credit
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.
$4.35MM Term Loan
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
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
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.
Aerospace Component Manufacturer
$6MM Term Loan
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.
$3.5MM Term Loan
The property, which had been vacant since the onset of COVID-19, sustained fire damage during the vacancy period and was the subject of a foreclosure sale slated to take place in late March 2022. A financing advisor was brought in by the owner of the real estate to find financing to take out the existing bank and circumvent the foreclosure sale. The transaction had to close within 45 days or else the owner of the property would lose well over $2.5MM of equity in the property. With time being of the essence, the financial advisor reached out to Briar Capital. Working hand-in-hand with the financial advisor, a creative financing structure was proposed which included a $2.2MM draw at closing, a $600M re-construction delayed draw feature, and a commitment size sufficient to capitalize interest throughout the one-year bridge term. Not only did the owner save their property with the refinance but they will now be able to complete the necessary building repairs and return the property to a positive cash flow position.
Oil Country Tubular Goods Business
$12.023MM Term Loan
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.
$6.75MM Term Loan
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.
Metal Fabrication Company
$5MM Term Loan / $1MM Revolving Line of Credit
After a challenging 2019, like many businesses, this company was greatly affected by COVID in 2020. With projects placed on hold and new work stalled in the bidding phase, this longtime business found itself in a liquidity crunch. After exhausting the various federal relief programs offered by the SBA, the company turned to Briar Capital and its one-of-a-kind real estate financing products for help. Briar Capital was quick to provide a combination term and revolving line of credit solution using ONLY the company's owner-occupied real estate as collateral. While the term loan portion was utilized to pay off the incumbent bank, the revolving line was used for liquidity. With the incumbent bank debt retired and the corresponding all-asset lien removed, the company was free to finance its accounts receivable with a separate lender to generate even greater access to liquidity. The combination of the two new loans provided the company with the much-needed working capital required to operate its business during both the COVID environment and for years to come.
$2.5MM Term Loan
After experiencing success locally, this brewery opted for expansion. Not only did they expand their brand by opening multiple locations across the state, but they also expanded distribution of their products outside of Florida as well. These projects were funded out of working capital so when COVID hit and sales at their tap rooms slowed, the company found themselves short on cash. To address their immediate cash flow needs, they quickly shifted a portion of their production to supply hand sanitizer during the COVID pandemic however it was not until they contacted Briar Capital before they found help to address their long-term cash needs. After a successful introduction by a National Bank, Briar Capital quickly stepped in to document a new real estate loan facility to replenish the companies working capital using the equity in their real estate. Briar Capital’s covenant free, payment friendly term loan solution was just what they needed to continue executing on its business plan and expansion.
Aircraft Parts & Equipment Distributor
$2.252MM Term Loan
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.
Fashion Products Wholesaler
$4.785MM Term Loan
Shortly after constructing a new, state of the art warehouse adjacent to their existing facility, this company experienced a stroke of bad luck. Due to unforeseen changes in the marketplace coupled with consolidation among a few of its customers, sales quickly fell more than 30%. Unable to reduce expenses fast enough given its new facility, overall profitability suffered, and the business posted significant losses. This prompted the company's long-time bank to suggest the wholesaler find a new lender. Briar Capital was brought into the transaction by the company’s new asset-based lender who was handling the refinance on the working capital assets. Working directly alongside the new ABL lender, Briar Capital was able to quickly document a real estate term loan facility to help accommodate the banks wish to exit the relationship all while providing the company access to much needed working capital.
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.
Seafood Processor & Distributor
$2.6MM Term Loan
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.