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<!doctype html public "-//w3c//dtd html 4.0 transitional//en" "http://www.w3.org/tr/rec-html40/loose.dtd"> <!--website by pixellence www.pixellence.com--> <html> <head> <LINK REL="stylesheet" HREF="../aes_styles.css" TYPE="text/css"> <title>Asset Enhancement Solutions</title> <meta name="generator" content="bbedit 5.0"> </head> <body > <div align="center"> <table class="content" cellpadding="0" cellspacing="0" > <tr><td align="center" colspan="2"><a href="default.html"><img src="../images/aesTop.jpg" width="889" height="173" border="0"></a></td></tr> <tr><td class="Topnav" align="center" colspan="3"> <a class="navTopFirst" href="../About.html">About Us</a> <a class="navTop" href="../NeilSeiden.html">Management</a> <a class="navTop" href="../News.html">In the News</a> <a class="navTop" href="../Success.html">Success Stories</a> <a class="navTop" href="../Contact.html">Contact Us</a> <a class="navTop" href="../default.html">Home</a> </td></tr> <tr><td valign="top" width="197"> <div id="leftnav"> <table class="leftTable" width="197" cellpadding="4" cellspacing="0" border="0" > <tr><td align="right"><a href="debtEquity.html" class="navleft">Debt & Equity Financing </a></td></tr> <tr><td align="right"><a href="../M&A.html" class="navleft">Mergers & Acquisitions</a></td></tr> <tr><td align="right"><a href="strategic-alliance.html" class="navleft">Strategic Alliances</a></td></tr> <tr><td align="right"><a href="strategic-planning.html" class="navleft">Strategic Planning</a></td></tr> <tr><td align="right"><a href="../Business-plans.html" class="navleft">Business Plans</a></td></tr> <tr><td align="right"><a href="../cfo.html" class="navleft">CFO Services</a></td></tr> <tr><td align="right"><a href="../turnaround.html" class="navleft">Turnaround Consulting</a></td></tr> <tr><td align="right"><a href="../troubled.html" class="navleft">Troubled Company Services</a></td></tr> <tr><td align="right"><a href="../expense-reduction.html" class="navleft">Expense Reduction</a></td></tr> <tr><td align="right"><a href="../white-papers.html" class="navleft">White Papers</a><br/> <img src="../images/empty.gif" width="190" height="45" hspace="0" vspace="0" border="0" align="right"> </td></tr></table> </div> </td> <td width="692" valign="top" align="left"> <table class="tomb" cellpadding="5" cellspacing="0"> <tr><td> <p class="tombstones"> <h4><b>Financing Challenge:</b></h4><br> <img style="margin: 0px 5px 5px -10px;" src="steel45mm.gif" width="164" height="129" hspace="0" vspace="0" border="0" align="left">A rapidly growing Steel Distributor needed to change the way it financed its business. The Vendor Financing that the Company utilized was not only expensive, but also left the Company very vulnerable and dependent on this particular supplier. In certain regions of the country this vendor was the Company's largest supplier, and in other regions this vendor was a competitor. The Company was very profitable, but as a Sub-S Corporation the Principal took significant distributions that left the Company with a small net worth and a debt to equity ratio that was too high to qualify for traditional bank financing.</p> <p class="tombstones"><font color="#058063"><b>Creative Financing Solution:</b></font><br> Asset Enhancement Solutions, LLC (AES) arranged a $45 million Revolving Line of Credit with an Asset-Based Lender that was able to eliminate the need for Vendor Financing. The line of credit provided for borrowings against collateral as follows: advances against accounts receivable of 85% and advances against inventory of 65%. The $45 million line included a sub-limit for Letters of Credit of $7.5 million. The interest rate was only .25% over the floating prime rate. The Company projects that the new line of credit arranged by AES will reduce its financing costs by approximately 25%.</p> <p class="tombstones">Prior to the closing of the new credit facility there was a significant management change at the supplier who previously financed the Company. The supplier informed the Company that it would discontinue financing the Company in the near future. Fortunately, the Company was proactive and asked Asset Enhancement Solutions, LLC to arrange the appropriate financing well in advance of the supplier's sudden decision to discontinue providing Vendor Financing.</p> <p><font color="#058063"><b>Contact</b></font><br>Neil Seiden, 516-767-0100<br><a href="mailto:[email protected]">[email protected]</a> </p> <p><< <A HREF="../Success.html"><b>Back to index</A></p><br/> </td></tr></table><br/> <br/> </td></tr></table> </td> </tr></table> </div> </body> </html>