Daily News: January 15, 2014

MCC Funds $1.5MM A/R and Inventory Credit Line

Mackinac Commercial Credit (MCC) funded a $1.5 million A/R and inventory line of credit for a Michigan-based building products distributor.

The distributor had suffered during the Great Recession and had to exit its long-term bank relationship. The replacement financing was cumbersome and expensive as it was composed of two different lenders, an A/R lender and an inventory lender.

Mackinac was called in by a trusted advisor of the distributor, who asked if MCC could provide a one-lender solution. MCC assessed the character of the ownership, the collateral and saw the firm was heading in the right direction. Mackinac closed the transaction within seven business days of the start of the field audit to meet the client’s deadline to give notice to its existing two lenders.

Mackinac’s line of credit saved the client substantial interest costs and provided them with increased availability.