Wednesday, April 20, 2016

LTS Funds Over $8.6 Million Dollars' Worth of Equipment

Yet Another Satisfied Customer... 

"Rob and I want to thank you and you team for the great job you did to get the closing funded. Without your steady and rational approach I doubt the financing would ever have closed. 

I particularly want to single out Loeb team member Angie for the outstanding contribution she made to keeping everything under control and moving forward. Your cool-headed and logical approach to the matters at hand was critical, but the professional back-up Angie provided was exceptional in my experience... 

Thanks again Jim for all the hard work you and your team put into getting the financing closed and we look forward to working with you again on the next one." 

 LTS Funds Over $8.6 Million Dollars' Worth of Equipment


$7.3 Million
to a Southeast Metalworking Manufacturer

$1.3 Million
to a Northeast Material
Recovery & Recycling Facility


We finance all types of businesses because we know asset values!

How can we help you provide the maximum funding amounts to your clients?? 


Learn More About Loeb Term Solutions ›




Thursday, February 18, 2016

LTS Provides Financing on Over $7.4 Million Dollars’ Worth of Industrial Equipment

Loeb Term Solutions provided financing of over $7,400,000 dollars’ worth of equipment to a Southeast metalworking facility which has experienced substantial growth over the past 8 years. The financing is helping the facility, which specializes in steel and aluminum mounting products for the solar industry, restructure their debt and refinance the existing leases on their machinery.

Since 2010, Loeb Term Solutions has provided funding on over $185 million dollars’ worth of industrial machinery. 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, a fifth generation provider of reliable equipment and related services to the industrial marketplace.  For more information on equipment term loans from Loeb Term Solutions visit www.loebtermsolutions.com.

Thursday, January 28, 2016

Loeb Welcomes Two New Members to the Team!

Loeb is kicking off 2016 by welcoming two new additions!

Loeb is pleased to announce the addition of Tim Serritella as Vice President, Business Development. Tim is a seasoned business professional with over two decades of success providing financial and management solutions to business owners and senior management. Having previously worked in banking and turnaround, Tim entered the industrial marketplace in 2012 where he focused on sourcing asset disposition and bridge loan opportunities. He is an active member of the TMA, CFA , ACG and MBBI.

Tim is based out of Loeb's global headquarters in Chicago and will be working with customers throughout Illinois, Wisconsin, and all states west of the Mississippi providing equipment based financial solutions.

Also new to the LTS team is Sam Marder who joins us as the new Credit Administrator. He holds a BS and MS in Accountancy and previously worked in asset based lending providing AR lending.

Welcome aboard Tim & Sam!!

LTS Funds Over $6.1 Million Dollars' Worth of Equipment

$3.2 Million
to a Northeast Coal Mining Operation

$1.6 Million
to a Southeast Plastics Manufacturer

$1.3 Million
to a Southwest Oilfield Construction Company


We finance all types of businesses because we know asset values!

How can we help you provide the maximum funding amounts to your clients??

Currently working with clients who have financing needs?

Contact Jim Newman today at (773) 496-5720 or jimn@loebtermsolutions.com.


Friday, January 15, 2016

Industry News: Scrap Metal Firms are Getting Hammered

From Crain's Chicago Business




Andrew Jacobson is paying his suppliers a lot less these days. And that's not a good thing.

One of the owners of All Metal Recycling in Franklin Park, Jacobson buys scrap steel for $50 per ton, down more than 70 percent from a year ago. 

But that doesn't boost All Metal's bottom line, because the price it charges customers has fallen as well. “I think everybody is hoping for a gradual price increase,” Jacobson says. 

Scrap companies in the Chicago area are bracing for a difficult year. The stomach-wrenching swoon in metal prices is driven by the slowing Chinese economy, a strong dollar that makes exports less competitive and excess supply in commodities such as iron ore, which steelmakers can use to make steel instead of reusing scrap, according to Joe Pickard, chief economist at the Institute of Scrap Recycling Industries in Washington, D.C. 

“There's going to be a continued thinning of the herd,” says Brad Serlin, president of Cicero-based United Scrap Metal. 

Prices for many metals have been falling for several years, and 2015 brought no relief for firms that would benefit from a bit of inflation in the sector. Zinc fell 29 percent to $1,568 per metric ton over the past year on the London Metal Exchange, according to Bloomberg. Aluminum was off 20 percent, to $1,473 per metric ton, while copper dropped 26 percent to $4,609.50. 

Tucked away in the region's industrial corridors, scrap firms are popularly known for gathering, processing and selling metals yanked from broken fridges and outdated furnaces hauled in by guys with pickup trucks. 

More significantly, they play a critical role in the region's industrial economy. By cutting deals with thousands of manufacturers around the region to buy excess shavings and cuttings, scrap firms offer factories another income stream while keeping their plants clear of piles of metal waste. 

It's a low-profile and famously cutthroat business. The largest privately held scrap firm in the region is Burnham-based Scrap Metal Services, which recorded $536 million in sales in 2014, according to Crain's research. 

“I've seen high markets. I've seen low markets. For some reason, this one feels the worst of them all,” says Jeffry Gertler, CEO of Scrap Metal Services. 

Gertler's company idled four facilities focused on automobile scrap in the area last year, laying off nearly 50 people. A couple of months ago, Sims Metal Management, a struggling firm headquartered in New York, closed a metal-collection facility on the North Branch of the Chicago River. More dramatically, Pure Metal Recycling abruptly shuttered six locations in the area and one in Indiana in early December.

UNPAID BILLS IN WAKE

The second-largest private scrap recycler in the area, Pure had an estimated $465 million in revenue in 2014 and employed around 400 people, according to Crain's research. A letter from Lincolnshire-based Abrams & Jossel Consulting posted to Pure's website blames difficult market conditions for its downfall. The consultant is liquidating Pure's assets for the benefit of creditors, according to the letter.

The Abrams & Jossel letter says Pure has at least $7.8 million in assets and liabilities of more than $15 million. Chris Dandrow, Pure's CEO, did not return a phone call.

Pure's closure left firms that did business with it smarting over unpaid bills, a harbinger of what could happen if other scrap outfits fold. Van Hoesen Industries in Roselle, for example, is owed about $98,000 for pumping out and disposing of wastewater on several Pure sites, says Jim Van Hoesen, an account manager at the firm. 
Geoff Wendt, president of Midwest Metal Products, which manufactures angle rings, flanges and other parts, says Pure owes his Michigan City, Ind., company $30,000 for scrap it picked up. “It's terribly upsetting” to be potentially out that amount, Wendt says.

Meanwhile, one of Pure's secured creditors, Chicago-based lender Loeb Term Solutions, is trying to gather some 4,000 Pure collection bins scattered around the area, according Loeb principal Jim Newman.

The demise of Pure has opened up opportunities for competitors. “We've taken on everyone we think is a good fit,” says David Wong, chief operating officer at Redline Metals in Lombard. He adds that the new customers have helped the firm boost its volume at a time when keeping those levels up is a challenge.

Serlin, from United Scrap, says his firm is looking at Pure customers as well. It's betting it will buck the industry trend and grow revenue by double digits by focusing on sectors, such as automotive and aerospace, which remain strong, opening a new location, striking annual contracts with customers and carefully managing inventories.

Chicago resident Jerome Brown, however, is pretty much finished with the metal trade—at least for now. For several years, he'd pick up scrap in his truck when friends who worked on heating and plumbing projects told him they had metal to get rid of. Now, Brown's taking a “Why bother?” attitude to the gig.

With yards paying $60 to $70 per ton for iron scrap, down from $300 a ton a few years ago, “it's not worth it.” He's focused on his residential remodeling job instead.

Thursday, December 17, 2015

Bridging the Gap to Traditional Lending

For many of the clients that come to Loeb Term Solutions for financing, their companies are distressed or in turnaround and they fall outside of the covenants of traditional lenders. However, this doesn't necessarily mean that the company will never be able to qualify with a traditional lender in the future. In fact, Loeb Term Solutions has been the right move at the right time to bridge the gap in financing for a number of companies, who have been able to exit our financing in 24-36 months. 

Loeb Term Solutions' equipment term loans work toward rebuilding a company's credit profile. All of our term loans come with a built in incentive for on time payments. Additionally, clients have a simple option with no restrictions for pre-payment allowing for early payoff at any time. 

Many clients have exercised the option to graduate from LTS' financing early in favor of SBA loans and traditional bank refinancing. Often this is accomplished through restructuring their financing through a real estate loan. Financing on real estate typically takes longer to fund but can have more attractive terms including: interest rate, payment size, and term length. Loeb Term Solutions has worked with customers to provide working capital in the form of an equipment term loan to provide a stop-gap while they pursued financing through their real estate. 

Equipment term loan financing can be an important step for companies to repair their credit and bridge their way back to traditional lending standards. Loeb Term Solutions is proud to have helped so many of our clients along their way back to traditional lending standards. 

We finance all types of businesses because we know asset values!
How can we help you provide the maximum funding amounts to your clients?? 

Currently working with clients who have financing needs? Contact Jim Newman today at (773) 496-5720 or jimn@loebtermsolutions.com. 

Learn More About Loeb Term Solutions ›

Tuesday, November 17, 2015

LTS Funds Over $3.7 Million Dollar's Worth of Equipment

"One of the easiest interactions that I have had as a turnaround professional in almost 20 years!!"

LTS Funds Over $3.7 Million Dollars' Worth of Equipment 

Loeb Term Solutions recently funded term loans on equipment valued at over $3.7 Million helping three more clients achieve their financing goals. We work with both end-users and financial professionals to provide financing to companies that fall outside of traditional lender's covenants. We finance all types of businesses because we know asset values! 

 What our financing partners have to say about us: 

"Thank you for all of your help in closing this M&E term loan. Although it has been a long journey from where we started, due to difficult negotiations with two judgment creditors, my interactions with Loeb throughout the process have been nothing but professional, responsive, pragmatic, and friendly. The entire process – initial contact, letter of intent, site visit, due diligence, resolution of gating issues, documentation, and closing – has been one of the easiest interactions that I have had as a turnaround professional in almost 20 years. It was a pleasure doing business with you, and I hope I get the opportunity to do so again in the near future!"

$1.5 Million
to a Southeast Food Manufacturer

$1.3 Million
to a Midwest Precision CNC Facility

$900,000
to a Northeast Pharmaceutical Mfg.

We finance all types of businesses because we know asset values! 
How can we help you provide the maximum funding amounts to your clients?? 

 Currently working with clients who have financing needs? Contact Jim Newman today at (773) 496-5720 or jimn@loebtermsolutions.com.

Wednesday, September 30, 2015

Liens: The Sleeping Giant Jeopardizing Turnaround Financing

Liens, in and of themselves, are neither bad nor good; they just are. When a company needs financing or refinancing, the new lender will always run a lien search and find exactly what liens are currently encumbering the company assets.

Over the past year, Loeb Term Solutions funded approximately 30 companies, and in the process cleaned up the UCC liens on file against nearly all them. Most of those clients treat their lien files more like a "sleeping giant" that only awakens once they seek financing or refinancing. Potential new lenders will always run a search to find liens that are currently encumbering a company's assets, and a long lien cleanup process can slow up the refinancing at a time when its imperative things move quickly.

As an example, during the recent due diligence performed for a client seeking funding, the following outstanding liens were uncovered:

  • A judgement lien for an old, unpaid insurance premium
  • Two judgement liens from unsatisfied vendors looking to recoup back payment
  • Liens tied to back tax issues

The client was completely unaware of the outstanding liens. As such, the cleanup and subsequently the funding processes took longer than usual. Typically, clients with clean Uniform Commercial Code (UCC) files can expect financing within a three-to-four week timeline, while clients with outstanding liens typically take five-to-six weeks to secure funding.

Another recent funding involved eight liens that needed to be cleaned up before funding could be even be considered. It took about two months of due diligence and working closely with the client to resolve six of the liens and only have two remaining. Those two liens were for fixed dollar amounts and in order to close, the client and the borrower agreed to put those funds into a reserve account. The funding took place and once the client cleaned the last two liens up independently, the additional funds held in reserve were then released.

The cleanup process itself can take as little as 10 minutes, if the lien holder agrees with you that the existing lien is inappropriate. If a lien is older than a few years, there can be issues in getting such an agreement or even tracing down the lien holder and without their permission it is impossible to clean up the lien.

Costly delays in financing can be avoided entirely if the client does preemptive due diligence or regular fiscal checkups. After all, it's considered standard to check in regularly with a dentist, doctor, or auto mechanic. Why wouldn't a company need to take the same approach with understanding the big picture regarding their financial health, especially if it means avoiding delays or problems when the time comes for them to seek funding or even to sell the company? One ounce of prevention will ensure a financially stronger and healthier business loses no time when funding is needed.

Don't jeopardize future funding turnaround by giving liens the "sleeping giant" treatment.

We finance all types of businesses because we know asset values!
How can we help you with your financing needs?

Let us know how we can help! Contact Jim Newman today at (773) 496-5720 or jimn@loebtermsolutions.com.