Is Your Business Under Pressure? Why It's Essential to Bring in a Qualified Financing Specialist

With the banks still reluctant to extend loans to smaller businesses, many small business owners and CEOs find themselves struggling to secure the working capital they need. If a business happens to have a troubled relationship with its bank or with key suppliers, or both, the situation can become critical. In many cases, it is the bank that pushes the small business firm over the edge.

We recently worked with a regional auto parts and accessories distributor that, like many smaller companies, started running into problems in 2007–09 with declining sales. The company had a line of credit with a regional bank, and unfortunately, it was unable to recover profitability quickly enough to maintain this lending relationship. Its losses and decline in enterprise value led to a covenant breach and a minor, technical breach on its borrowing base certificate. The bank lost its patience and put the company in forbearance in 2009.

The company not only urgently needed financing to repay the bank, but also to provide additional working capital to bridge the gap between collecting AR and paying vendors. It’s primary supplier, a major national auto parts manufacturer, was aware of the company’s borrowing problem, and began applying pressure on the supply side, too.

If your business is under pressure, it is essential to bring in a qualified financing specialist as soon as possible. But even in a late and seemingly intractable situation, US Capital Partners can be instrumental in engineering a pathway that is least damaging to the client and its stakeholders. Find out how our specialist advisory and financial restructuring services helped manage and navigate their way through a very serious situation by reading the full financial advisory and restructuring case study.

At US Capital Partners, we are skilled at helping smaller businesses navigate difficult situations. What makes us unique is that we not only provide funding, but also offer specialist advisory and financial restructuring services. Our ability to assess complex or special situations quickly and provide solutions outside the bankable box has made us one of the most innovative small to middle-market investment banks and lenders in the country. You can also visit our website to view all our detailed case studies.  If you would like to know more about how your business can secure the funding it needs, visit or call (415) 882-7160.