Use the Equity in your Real Estate to Quickly Generate Working Capital for your Business
Real Estate Term Loans
- Loan sizes $1MM to $10MM
- 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
Los Angeles, CA
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
San Antonio, TX
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.