General Parameters

  • First security interest in all assets of borrower
  • Personal guaranty of principal owner(s) > 20%
  • Notes payable to related parties to be subordinated to GLBC
  • Weekly borrowing base reporting
  • 12 month facilities; no early termination fees
  • Full dominion of funds, with lockbox
  • Quarterly field exams

Accounts Receivable

  • Advance rates up to 85% as determined by historical dilution
  • Up to 90 days from invoice date, domestic accounts receivable
  • Foreign accounts covered by acceptable credit insurance

Inventory

  • Advance rate up to 50% of raw materials, finished goods
  • Value based on the lower of cost or market
  • Ineligible inventory: Work in Progress; Supplies/Packaging; Stale; Items held at outside processors; Damaged

Machinery and Equipment

  • Advance rate up to 70% of forced liquidation value as determined by a recent acceptable appraisal
  • Amortization up to 60 months

Owner-occupied Real Estate

  • Advance rate up to 65% of value as determined by acceptable appraisal
  • Amortization up to 300 months
  • In conjunction with ABL working capital facilities only

Debtor-in-Possession

  • Limited to companies in Chapter 11 Bankruptcy
  • GLBC must have priority over existing debt, equity and other claims

Factoring

  • Recourse, with notification sent to account debtor
  • Verifications performed on invoices > $1,000

These are all situations where banks have difficulty saying yes. These are situations where Great Lakes can be an invaluable resource.