Borrower is an owner/operator of a fuel distribution facility and had two interesting acquisition opportunities that needed to be closed within 30 days. Favorable acquisition pricing dictated that borrower choose a financing route with speed and certainty of execution.
Red Fox Capital was able to close the deals within the customer’s timeline, utilizing an existing asset base (i.e. other real estate assets) to shore up the cash flow uncertainty around the assets to be acquired. Red Fox Capital’s loan not only allowed for the acquisitions, but also 1) provided for future acquisitions, and 2) allowed the customer time to improve cash flow / operations on the acquisition targets.
Going in leverage is well below SBA guidelines (and within conventional market standards). As operations improve, Borrower should be able to refinance via conventional or SBA permanent loan.