Business Capital has amicably settled $5 million in debt with over 40 secured and unsecured creditors and delivered $3.5 million in new capital for a Las Vegas family medical practice. The new credit facility will serve to pay off existing debt, increase working capital and avoid a costly Chapter 11 bankruptcy proceeding.

The family medical practice, co-owned by three MDs, has been in business for more than ten years and provides comprehensive healthcare, primary care medicine, urgent care, internal medicine, pediatric care and in-patient hospital admissions. The company experienced setbacks due to circumstances including a decline in the local economy and the defection of one of the partners. The resulting outstanding debt and high interest loans prevented the company from taking advantage of a recovery and the opportunity for increased business. To further the company’s growth, Business Capital restructured the company’s debt and worked out new payment terms with critical suppliers and vendors. Working with its network of lenders, Business Capital also structured a more affordable revolving line of credit targeted specifically to address the medical billing nature of the business and the client’s current and future needs.

“This debt restructuring and new credit facility substantially reduced our client’s cost of capital and increased their cash flow,” said Chuck Doyle, managing director of Business Capital. “Our client had taken out several high interest signature loans that were essentially credit cards, racking up tremendous amounts of debt they could no longer support. In addition, the company lost most of its trade credit and was put into collections by several creditors who were owed substantial amounts of money. Business Capital re-opened previously closed trade relations by deploying our proprietary Vendor Assurance Program. We successfully secured new credit agreements with critical suppliers and secured lenders, which renewed trade channels, restored credibility and preserved relationships with critical vendors. We worked carefully with each creditor to ensure integrity and good will were preserved and set the stage to allow relationships to move forward on stronger footing with improved communication. Additionally, we were able to increase their working capital via our wide network of credit committees, which understood the situation and solutions we presented. “

Business Capital is a national commercial finance and debt restructuring firm that specializes in business loans and creditor workouts for small to middle-market companies.