Loeb Term Solutions Funds 8 Million Dollars in Equipment Financing to a West Coast Aerospace Metalworking Firm

Loeb Term Solutions recently funded 8 million dollars to a West Coast metalworking facility specializing in aerospace components.

The term loan provided the working capital necessary to restructure the firm and reassume a majority holding of stock in the firm. Headquartered in the US, but with global capabilities in Mexico and the United Kingdom, the client is a leading manufacturer of high-precision, close tolerance, large-scale, flight critical components and tooling for the commercial aerospace, defense, space and industrial markets.

“Fundings of this size require a real team effort. We really enjoy working with the borrower, the business broker, and all the professionals involved in a funding like this one,” stated Jim Newman, Loeb Term Solutions’ Managing Partner. “It is gratifying to be able to help a borrower accomplish something like this.”

This finance deal represents one of two large additions to Loeb Term Solutions’ portfolio this month with the other funding totaling just over 12 million dollars. Since 2010, Loeb Term Solutions has provided funding on over $40 million dollars’ worth of industrial machinery within the food, pharmaceutical, chemical, cosmetic, metalworking, and woodworking industries. The company’s asset-based lending division offers specialty financing for the industrial marketplace with funding amounts ranging from $300,000 to $20,000,000.

Loeb Term Solutions is an affiliate of Loeb offering equipment term loans and purchase leasebacks to the industrial marketplace. For more information on Loeb Term Solutions and its recently funded deals, visit: www.loebtermsolutions.com.

Loeb Term Solutions Funds Over 12 Million Dollars in Equipment Financing to a Midwest Company, Acting as Lead Syndicate

As the lead participant in a syndicated financing deal, Loeb Term Solutions recently partnered in funding over 12 million dollars in equipment term loan financing. The term loan will provide the working capital necessary to solidify the acquisition of a Midwest metalworking company to new owners.

As the lead participant, Loeb Term Solutions worked directly with the borrower, their management team, and corporate advisors, structuring the deal from the initial stages through to completion and providing $4,000,000 toward the final funding amount.

Headquartered on Chicago's south side, the newly merged operations will provide scrap metal services, electronic and medical equipment removal, resale, dismantlement and recycling, asset management, document shredding, cardboard, paper, wood, plastics, and technology recycling.

"Given the nature of this finance deal, we worked extremely close with the client's AR lender to provide as much liquidity as possible," stated Jim Newman, Loeb Term Solutions' Managing Partner. "Our equipment term loans are structured in a way to work in tandem with the AR lenders in order to maximize the working capital in complex scenarios often deemed as un-bankable by traditional lenders."

Since 2010, Loeb Term Solutions has provided funding on over $40 million dollars' worth of industrial machinery within the food, pharmaceutical, chemical, cosmetic, metalworking, and woodworking industries. The company's asset-based lending division offers specialty financing for the industrial marketplace with funding amounts ranging from $300,000 to $5,000,000.

Loeb Term Solutions is an affiliate of Loeb offers equipment term loans and purchase leasebacks to the industrial marketplace. For more information on Loeb Term Solutions and its recently funded deals, visit: www.loebtermsolutions.com.

Over 6.5 Million Worth of Equipment Financed in September Solving 3 More Clients Needs

"Loeb Term Solutions came through with a quick and affordable financing option for us and the process was seamless from start to finish. We were very pleased with the quality of the service provided, the responsiveness, and the way the entire Loeb team conducts business. -- Kim, FL

Equipment Valued in Excess of $4.1 Million to a Midwestern Mfg. of Cast Aluminium Auto Components

Equipment Valued in Excess of $1.5 Million to a Southeastern Precision CNC Mfg. Facility

Equipment Valued in Excess of $750,000 to a Midwestern Precision CNC & MIG Welding Facility

Startups, fast growing, downsizing, bankruptcy, note purchases...We finance all types of businesses because we know asset values!

7 Things You Need to Know About Equipment Based Lending

By Jim Newman Principal

Recently, I was approached to speak on a panel regarding lending on special assets. Time and time again, I was asked about Loeb Term Solutions' unique approach to the lending business based on our extensive history of buying, selling, appraising and auctioning industrial assets. Simply put, we live and breathe machinery! I thought, as obvious as it may seem to us at Loeb, it might prove helpful to our partners in the lending community to know the 7 Key Points we apply to our term loan process.

7 Things You Need to Know When Lending on Machinery:

1. Understand how fast the market can absorb the type of machinery being financed. Highly specialized equipment usually takes longer to liquidate than "standard" mainstream equipment. It is the job of the lender to understand this liquidation process and to make sure they are comfortable and that the projections are obtainable. Remember, the more comfortable the lender is, the more money the lender may choose to advance. 
2. Have a clear exit strategy. Have a clear understanding on how you will liquidate the machinery in the event of a default. The easier this process is, the easier it is for the lender to advance more money.
3. Be flexible with the original collateral pool. In the event of third party leases, you must be willing to allow a small amount of the equipment to continue with its lease. Especially if there is excess equity in the lease and that equity is not needed to structure your deal. However, you should make sure to file a blanket lien on all the equipment in the event of liquidation. The equity in the leased equipment should "captured" for the benefit of the lender and the borrower.
4. Always make sure you have a first position lien on the machinery. All the old liens must be cleaned up during the due diligence process in order to properly secure your investment.
5. Always file a blanket lien on all assets in order to protect the guarantor of the loan. This prioritizes that the business assets are used first to pay off the lender before any personal assets are needed. When the borrower is also borrowing from another lender on its A/R and/or inventory, the two lenders must have an intercreditor agreement in place to spell out their respective positions on the assets.
6. Prepare to be flexible during the term of the loan as the borrower's needs change. Lenders need to have a method to provide additional funding to borrowers who have kept current with their existing loan and need additional funds for additional equipment.   
7. Always trust your instincts! Lenders cannot document everything that is possible. We always depend on the integrity of the borrower as the relationship needs to be a win/win relationship. 

Loeb Term Solutions is always looking to assist Lenders with hard to finance assets...We finance all types of businesses because we know asset values!

How can we help you close more deals?

Loeb Term Solutions Welcomes Dave Wanders to Team as New Business Development Officer

Loeb is pleased to announce the addition of Dave Wanders to the Loeb Term Solutions team as its newest Business Development Officer. He joins Jim Newman, Managing Partner and the rest of the team in focusing on expanding the financial arm's equipment-based lending portfolio.

"Dave's addition to the team comes at a time of growth for the company," stated Jim Newman, Loeb Term Solutions' Managing Partner. "In just three short years we've grown a considerable portfolio of equipment-based deals funded with significant growth potential in 2014."

Since 2010, Loeb Term Solutions has provided funding on over $40 million dollars' worth of industrial machinery within the food, pharmaceutical, chemical, cosmetic, metalworking, and woodworking industries. The company's asset-based lending division offers specialty financing for the industrial marketplace with funding amounts ranging from $300,000 to $5,000,000.

"Having previously worked with Dave in the industry, we knew someone with his experience, integrity, and knowledge would be a huge asset to our team," stated Howard Newman, President of Loeb.

Dave is an industry veteran with over 30 years of corporate and commercial finance experience largely in the asset based industry. Most of his career has been spent in business development focusing on sales and general management for such companies as: Goldman Sachs, GE Capital, First National Bank of Chicago, Transamerica Business Credit, Stearns Financial Services, and Gibraltar Business Capital.
He holds a B.A. from Yale University and M.M. from Northwestern University's Kellogg School of Management and is a member of the Turnaround Management Association, the Association for Corporate Growth, the Alliance of Merger & Acquisition Advisors and the Midwest Business Brokers & Intermediaries.

Loeb Term Solutions is an affiliate of Loeb offering equipment term loans and purchase leasebacks to the industrial marketplace. For more information on Loeb Term Solutions and its recently funded deals, visit: www.loebtermsolutions.com. To contact Dave directly regarding financing or new business opportunities, he can be reached via email at davew@loebtermsolutions.com or (312) 509-0943.

About Loeb
For five generations since 1880, Loeb has been a trusted provider of reliable equipment and related services that help manufacturers and financial institutions leverage their industrial assets by managing the equipment lifecycle. Headquartered in Chicago with a 150,000 square foot facility, Loeb provides: equipment sales, purchases, rentals, leasing & liquidations, certified market appraisals from Loeb Appraisal, auction services & asset disposition from Loeb Winternitz Industrial Auctioneers, and equipment financing from Loeb Term Solutions. Loeb and all of its divisions are experts in providing equipment solutions to the: food, pharmaceutical, cosmetics, chemical, metalworking, woodworking, plastics, and printing industries. For more information on Loeb or any of its business units, please visit: www.loebequipment.com.

Over 4.5 Million Worth of Equipment Financed to Solve 4 More Clients Needs

Recent Transactions Include:

$1.5 Million - M & E Term Loan to a Midwest Surface Coal Mining Operation...Read More ›
$1.1 Million - M & E Term Loan to a Midwest Printing Operation...Read More ›
$1.1 Million - M & E Term Loan to a Southwest Nutraceutical Manufacturer...Read More ›
$750,000 - M & E Term Loan to a Southeastern Protein Processor...Read More ›

Startups, fast growing, downsizing, bankruptcy, note purchases...We finance all types of businesses because we know asset values!

How can we help you close more deals?

Customer: A Midwest Surface Coal Mining Operation Financial Situation: The customer was looking to bring existing vendors current and to expand their operations. Solution: Loeb Term Solutions was able to provide a term loan on the equipment valued in excess of $1.5 Million

Customer: A Midwest Web Offset Printing Operation Financial Situation: The customer was looking for additional liquidity during their corporate turnaround. Solution: Loeb Term Solutions was able to provide a term loan on the equipment valued in excess of $1.1 Million

Customer: A Southwest Nutraceutical Contract Manufacturer Financial Situation: The new parent company utilized the equipment financing to complete the acquisition of the company. Solution: Loeb Term Solutions was able to provide a term loan on the equipment valued in excess of $1.1 Million

Customer: A Southeastern Protein Processor Financial Situation: The customer was looking to restructure their existing debt and bring vendors current. Solution: Loeb Term Solutions was able to provide a term loan on the equipment valued in excess of $750,000

If you are currently working with clients who may have upcoming financing needs, contact Jim Newman today at (773) 496-5720 or jimn@loebtermsolutions.com.