Old Hill, an asset-based loan provider, provided an $8 million secured revolving-to-term credit facility to a specialty finance company that provides working capital to small businesses in the form of merchant cash advances. The facility was secured by a first lien perfected security interest in receivables originated by the borrower.
“We operate in an underserved part of the lending market that requires specialized knowledge and that is being avoided by large traditional banks due to regulatory constraints. Our experience in the merchant cash advance space, which goes back for over a decade, allowed us to execute on the transaction in a difficult market environment for the industry. We worked very closely with the borrower to craft a custom transaction, secured by strong collateral, that aligned the interests of all involved,” Peter Faigl, senior portfolio manager at Old Hill Partners, said.
Old Hill Partners provides asset-based lending solutions for borrowers seeking $5 million to $35 million in financing. The firm structures senior secured debt in the form of term, draw down and revolving-to-term facilities of up to four years and loan-to-value ratios in the range of 35% to 85%. Collateral types include pools of loans or leases (specialty finance), receivables, inventory, machinery and equipment.
