Bank Policy Exception - Example

Equipment: POS System & Environmental Upgrades for Gas Pumps
Size: $245,600
Term: 60 Mos.
Structure: First + Last
Hurdles to transaction:

No collateral value
Sale lease-back: Lessee had prepaid for much of the equipment and needed to be reimbursed
Rapid expansion in 2005 & 2006 presents management challenges
Leveraged balance sheet

Reasons for approval:

Excellent personal credit – 749 FICO
Strong personal net worth - $3MM with $1MM liquid assets
Good business credit
Business is retail but sector is relatively stable

Summary:
Eight (8) year-old Gas station and C-Store business that owns/operates over 120 locations throughout the southeastern United States. Broker had submitted to a couple of “A” lenders and received approvals for less than the full amount on an application only basis. Additionally, the lessee had paid for more than 50% of the equipment for which they were requesting reimbursement.

The business is profitable on revenues of $130MM and shows very strong cash balances (L7). Due to the nature of their real estate assets the business appears to be leveraged but has good cash flow and market value of these assets is significantly higher than the depreciated basis on the balance sheet. Long time industry experience and a very good interview allowed us to underwrite, approve and fund this transaction in less than 1 week.