Flatbay Capital announces the funding of a $4.3MM commercial real estate loan for a research & development, engineering, and testing company that supports the energy industry.

About the Company

In business for 20 years, our client is a research & development, engineering and testing company that supports the energy industry.

The Situation

Our client spent years developing a new product line and eagerly looked forward to their following growth; however, the release happened right before Covid-19. What they assumed to be a year of opportunity took a turn as their most challenging year to date.

The company’s revenue plummeted due to the pandemic and a temporary downturn in the oil and gas industry. With an unstable economy, their relationship with their national bank suffered.

Unfortunately, they had to part with the bank when they were moved to special assets and required to pay off the letter of credit (LOC) due to small losses they incurred in 2021.

With no way to stay afloat by themselves, they sought a life raft in private credit.

We Engineered the Right Solution!

The Flatbay Capital team deep dived into the business’s history and found out our client had historically been profitable for many years. We definitely believed they could do it again.

“One of the main reasons I joined Flatbay Capital was to help the small business owner during a distressed time within their business cycle. It brings me such great joy to know that we have helped equip another great company to position itself to achieve a successful turnaround! We are here to help!”  - Vivian Thompson, BDO/Partner of Flatbay Capital.

Our solution comprises a 3-year interest-only term note, with a meaningful cash-out. Cash flow from operations combined with the debt restructuring will support the client’s business while it rebounds. In addition to providing much-needed liquidity, Flatbay is very flexible, has no financial covenants and the client can go back to bank financing whenever they are ready.

A big thank you to the client for partnering with Flatbay Capital! We can’t wait to see you soar!