Client Objective:

A leading manufacturer undergoing a major production scale-up required capital to acquire and deploy a broad set of manufacturing and processing equipment — including industrial saws, hydraulic presses, forklifts, and specialized material-handling systems. The expansion aimed to increase output capacity, improve production efficiency, and support new contract growth while maintaining balance sheet flexibility.

Key Considerations:

• Initial capital approval of $10MM, later increased to $12MM to accommodate additional high-capacity equipment and rising project costs.
• Client sought a financing structure that minimized near-term payment obligations and preserved working capital for ongoing operations.
• Equipment delivery and installation schedules required a staged funding approach with scalability as project needs evolved.
• Secure Capital positioned to scale capital support over time, aligning with the client’s growth trajectory and cost fluctuations.

Financing Structure:

• Total Facility: $12,000,000 USD
• Term: 60 months
• Balloon Payment: 25% at maturity
• End-of-Term Options: Refinance, early payoff, or re-term to extend equipment life-cycle.
• Facility structured to accommodate drawdowns tied to equipment delivery milestones, optimizing capital utilization and reducing interest carry.
• Collateralized by new and existing production assets, supported by corporate guarantees and covenant-light terms tailored to cash flow projections.

Results:

• Delivered a customized financing solution that reduced monthly obligations while preserving liquidity and borrowing capacity.
• Enabled the client to complete its equipment rollout on schedule and expand production throughput by over 30%.
• Improved operational efficiency and reduced unit production costs through equipment modernization.
• Secure Capital’s flexible structure aligned with the client’s growth, cash flow profile, and long-term capital strategy, positioning the business for continued expansion and profitability.