Sawgrass Finance, the Ponte Vedra-based asset-based lender, provided a $5 million asset-based loan extended to a player in a heavily regulated industry based out of Southwest USA.
When a traditional lender reduced its exposure to the cannabis sector, a distributor of plant cultivation equipment and supplies was left in the lurch. Despite the backing of a strong client base in a legal industry, the company faced a setback not uncommon in the risk-averse world of traditional banking: shifting goalposts from a lender unable to circumvent its rigid criteria. Fifteen other lenders declined before one recommended the company connect with Sawgrass Finance.
“A distribution company with a healthy customer base and legal backing is a quality borrower,” Marius Dobren, founder of Sawgrass Finance, said. “But because they don’t fit into some lenders’ boxes, they were in trouble.”
Through Sawgrass’s network of banking partners, the distributor received a $5 million flexible line of working capital without any reputational harm or interruption in operations.
“Which industry is misunderstood changes every day,” Dobren said. “What doesn’t change is that creative business owners often face unique challenges. The good news? That’s nothing a creative lender can’t solve.”
