Case Study: Successfully Navigating Financial Challenges with EROC Advisors

Introduction: In 2023, our client faced significant financial hurdles due to a challenging year. Despite no payment defaults or issues with collateral, the company struggled to meet their financial covenants and needed immediate assistance to purchase inventory for the upcoming season.

Challenge: The company needed $500,000 quickly to purchase inventory. Their current bank was unable to provide the necessary support, putting the company at risk of not meeting their seasonal demand.

Solution: EROC Advisors stepped in to provide a solution. We sourced an $800,000 short-term loan secured by second liens on two commercial properties. This loan provided the company with the time needed to refinance their bank debt and purchase the required inventory.

Process:

  1. Initial Assessment: EROC reviewed the company’s financials and assured the lender that a refinancing solution could be found within six months.
  2. Short-Term Loan: Secured an $800,000 loan to cover immediate needs and facilitate inventory purchase.
  3. Long-Term Strategy: Worked with the company to identify and secure a new banking relationship that included:
    • A real estate term loan
    • A revolving line of credit
    • Full treasury management services

Outcome: Within five months, our client successfully transitioned to a new banking relationship, repaid the short-term loan, and turned a corner on their business challenges. EROC Advisors’ strategic intervention and financial expertise played a crucial role in this successful outcome.

Conclusion: EROC Advisors demonstrated our ability to leverage deep-rooted connections and financial expertise to craft bespoke solutions tailored to the unique needs of our client. This case highlights our capability to navigate complex financial situations and deliver timely, effective results.

If your business is facing financial challenges and needs expert guidance, contact EROC Advisors today. Our seasoned team is here to help you achieve your business objectives.