Emergency financing situations can arise from unpredicted situations to quick opportunities. You might be between a rock and hard spot or on the edge of a major initiative. You might have been impacted by COVID-19 uncertainty and disruption.

Emergency financing means time is of the essence.  Structured Financing will provide rapid response. We triage the problem or opportunity and determine the feasibility of a quick workaround or complete solution. 

Stressed or Rush Financing Lenders' have specific risk criteria for advancing funds to bridge medium-term periods. We evaluate the business capability and financing capacity to create a quick turnaround lending package. We align the financing requirement to the lending criteria of specialized lenders. 

Stressed or Rush Financing - Common challenges: 

• A complete refinancing required in under 45 days
• New funding required in under 30 days
• Rapid large new orders
• Working capital required for project development delays and overruns
• Supply shock or customer demand destruction
• Weak financing ratios
• Change of supplier financing terms
• The existing lender has demanded its loan repayment
• A refinancing offer/term sheet has fallen through
• The existing lender has restricted advance rates, collateral security margin
• Loss of customers
• Demands for cash outside of the business
• Protracted negotiations, difficulty closing
• A turnaround, or the business has experienced a difficult fiscal period where loan covenants are not met
• The business cannot meet pre-funding conditions

Solution

Stressed or Rush financing relies on quickly defining the path to financing, anticipating the potential obstacles and realistic probabilities of success. There is no time for paralysis by analysis. More complex transactions and refinancing’s take more time, whereas financing against standard collateral assets such as receivables, equipment, and property can be completed quickly. The speed of the transaction is dependent on the lender's ability to turn around a financing request and Structured Financing steps in to expedite the process. We will problem solve, sort out gaps, configure the options, packaging, and approaches to be considered, quantified, and evaluated in concise period of time.  

Lenders require details that are focused on their critical path issues, which can involve management’s skill and how business operations, cash flow and/or its assets can support the required financing. Repayment to exit to extension options must be developed with concrete milestones and safety margins.

We identify the likeliest financing scenario, expected pricing, and most suitable lender(s). Building a lending case, we draw on our previous experience with Rush Financing structures, and drill down into the details to ensure alignment with each prospective lender and solution.

« Back to financing types