Client is a leading fuel and lubricants distributor in Singapore with more than 1000 clients.
Challenges
Although the client’s current operation is profitable with no immediate cash flow pressures; the client is planning for expansion into SEA and needs incremental liquidity in the next 12 to 24 months. However, the client is challenged by heavy reliance to a lender; whom have also imposed restrictive financing covenants and conditions.
Actions & Solutions
We reviewed their existing banking facilities and financial / operating statements. As a result of our analysis, we uncovered that the client has a Standby Letter of Credit (SBLC) Facility which is not optimally used.
Client engaged CCR Finance as an advisor to:
Provide a plan to negotiate with existing banker to remove the shareholder’s personal guarantee and existing covenants
Connect with new lenders and financiers to refinance existing facilities with improved terms and conditions
Structure a financing solution leveraging on existing SBLC facility as an interim measure to access more liquidity to support the business