Platform
Rapid underwriting evaluation through the CE platform.
Unavailable personal guarantee
Supporting Expansion for a Global Telecom Manufacturer
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- Bank
- Oklahoma based regional bank
- Borrower
- Telecom parts manufacturer
- Line of credit
- $1,000,000
- Collateral coverage
- $400,000
Situation overview
- Manufacturer of telecom components expanding its U.S. operations
- Borrower new to the bank, with no prior relationship history
- Borrower seeking credit to fund the U.S. expansion
- Collateral support needed on a $1M line of credit
Underwriting concerns
- 01
Unavailable personal guarantee
- 02
Overseas inventory
- 03
New relationship for the bank
Executives could not furnish personal guarantees on the facility. Inventory was positioned overseas, complicating valuation in terms of the borrowing base. This was also a new relationship to the bank, with no history to underwrite against.
Solution
Collateral
CollateralEdge™ provided a $400,000 collateral letter of credit, offsetting the absent personal guarantees.
Bank Control
The bank retained full control over loan structure and collateral deployment.
Benefits
The CollateralEdge value proposition is designed to align incentives with our bank customer to win a commercial loan.
The bank approved a $1 million line of credit.
$400K of collateral coverage offset the guarantees the borrower could not provide.
The bank became integral to the borrower’s global expansion.