Bad Timing, Creative Solution

Sometimes the need to restructure debt comes from outside forces. This was the case for a Tampa Bay area storage facility owner. After finding himself in a tough financial position, the owner for this local storage facility reached out to Links Financial so that he could get himself the financing he needed to keep his business.

Bank Denies Company a Loan Extension

Our client had obtained a semi-permanent construction loan to build several self storage facilities right before the recession – not the most ideal time to engage in a loan, but no one could have forseen the catyclismic events that would occur from 2008-2012. Over the next several years, the bank with which our client held his loan was taken over by the FDIC and sold to a new bank. When a bank is taken over by the FDIC, it greatly limits its customers’ ability to renew or extend any loans. In our client’s case, he wasn’t able to negotiate at all.

After 5 years of being an exemplary customer and never missing any of his payments, our client reached out to the bank for an extension on his existing loan. The new bank offered our client only two options: he could pay his loan down by a dramatic $1 million, which would have required him to liquidate his retirement, or the bank would sell his note to a vulture fund, which would’ve resulted in our client going into foreclosure and losing his business.

Our client was faced with choosing to deplete his retirement or lose his entire company after 40 years in business, a choice that he just couldn’t make. That’s when a friend told him to call Links Financial.

Turning a Bad Situation Into a Great Deal

Although our client was unable to negotiate with the new bank, Links Financial could. We were able to convince the bank to extend our client’s loan for 6 months, which gave our team time to find a new lender and structure the best deal possible for our client. Thanks to his outstanding track record, finding a new lender for our client was easy. With several banks fighting for his business, we were able to negotiate a $4.8 million deal with a 25-year amortizing SBA-backed loan, with more flexibility and a 5% interest rate with a new lender!

Our team was happy to use our knowledge and experience to help this particular client, who found himself suddenly in a horrible situation at no fault of his own. In order to make sure this was a transaction where everyone wins, Links Financial considered the pain points and perspectives of all parties involved and creatively structured a deal that addressed them all.

If you find yourself in a similar situation, don’t hesitate to contact us! Links Financial is here to help you find the best solution for your business.

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