Flatbay Capital secured a $1.7 million commercial real estate (CRE) loan to refinance existing CRE debt for its client, a Houston-based fabricator focused on interior design for commercial spaces.
A lightning strike from Hurricane Beryl caused a complete power outage at the fabricator’s operating facility. The owners tried to resolve the issue by renting generators, but these were insufficient for their heavy equipment. The owners eventually had to outsource their milling and increase overtime costs for manual labor, which significantly impacted profit margins.
Despite its proven financial history and profit margins, the bank needed an additional year of positive net income before the fabricator could qualify for traditional financing, so, the company’s owners sought alternative means and contacted Flatbay Capital.
The refinancing provided cash out to repay high-interest loans from other lenders and the remaining funds will serve as growth capital for the client.
