Triangle Capital Access Closes Loan for Auto Financing Provider
Triangle Capital Access Co., Inc. announced the closing of a $500,000 credit facility for a provider of subprime auto financing. The borrower, a purchaser of installment contracts at a discount from used car dealers, started operations in 2010 and despite strong demand and successful operations, was unable to grow because of limited equity and a senior credit facility structured as a term loan with a short amortization.
Triangle quickly identified a local bank that specializes in rediscount lines of credit to small loan companies and other providers of sub-prime consumer loans. The new facility is structured as a revolving loan with an advance against the acquisition costs of the installment contracts. It generated additional liquidity at funding and removed the amortization requirement that had absorbed the borrower’s cash flow and stifled its growth.
Triangle Capital Access Co., Inc. specializes in arranging senior debt and junior capital for SMEs experiencing financial discomfort or distress arising from weak financial performance or from rapid growth.