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Diamond Business Credit Provides Credit Line to Courier Services Company

November 02, 2016, 07:05 AM
Filed Under: Services

Diamond Business Credit announced that it recently funded a $200,000 line of credit to a courier services company that faced serious problems and was in need of a significant turnaround. 

Given the distressed conditions, the company’s bank could no longer continue the credit relationship and asked the company to find a new home.  The company engaged a well-known consulting firm to help negotiate a smooth transition from the bank as well as with other key creditors.  The consultants recommended Diamond to replace the bank and fund ongoing operations.
The company presented a complicated story of operating losses and personal credit issues; and with such a small loan, most lenders would simply pass and move on to the next much simpler, transaction.  But the lenders at Diamond take great pride in using their decades of experience and their creativity to structure a solution and they did it again here.  Along with the consultants, who worked tirelessly to find a solution that would allow the bank to get out whole, Diamond structured an asset-based line of credit that included a customized borrowing base and a modest over-advance line.  The credit facility allowed the company to meet all of its current obligations while the consultants executed the financial turnaround.
The bank got repaid, in full, and this company, along with its dozen or so employees, got a second chance at life.  

Diamond provides small, asset-based lines of credit (not factoring) to businesses unable to arrange traditional bank financing, often in rapid growth, crisis or other situations that require creative decision-makers on site. 

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