Information Request

Name

Email

Company Name (optional)

Phone Number (optional)

Comments (optional)

Contact Blacksail Capital

1 Toronto Street
Toronto, ON M5C 2V6

Telephone: 416.708.8746 (CANADA)
Telephone: 512.710.6737 (US)
Email: info@nextedgecf.com

News & Blog

News & Blog

Asset Based Lending… It’s Not Just About the Collateral

November 12, 2019

Asset Based Lending… It’s Not Just About the Collateral

Consolidation within the ABL industry over the last several years has generally resulted in reduced options for mid-sized corporate borrowers, but unlike consolidations that reduce product offerings, Blacksail Capital Partners (“Blacksail”) became part of the Garrington Group of Companies (“Garrington”) to expand options.

We have consolidated back office talent under one roof Line Financial Services (“Line Financial”) to improve underwriting speed and efficiency while retaining our specialization and service focused on asset-based lending at the front office level.

By joining Garrington, Blacksail has become part of a stronger multifaceted lending platform with improved flexibility to invest in other product lines covered by our fellow Garrington Group sister companies, including ABL, Factoring and Specialty Lending. Blacksail remains the “go-to” team for booking asset-based loans at the Garrington Group.

We continue to focus on margining accounts receivable, inventory, equipment and real estate assets to North American small to mid-sized corporate borrowers with a renewed focus on “conforming asset based loans” with strong and balanced borrowing bases.

A wise old colleague of ours used to say, “You have to avoid, to miss the accidents”. That is why Blacksail believes that it is not just about the collateral. It is also about the constant monitoring of these loans with skilled professionals that recognize a problem happening even before their client does. Although things like borrowing base certificates, constant verifications and bank reconciliations seem like mere administrative overhead, they also function to help businesses grow profitably.

A strong initial assessment is not the only thing that keeps us and our clients from losing money. Having a strong back office team such as Line Financial, with its best in class team, will ultimately help both our borrowers and Blacksail lead to success. We succeed when our borrowers succeed – it is as simple as that.

Loan File Case Study – Blacksail

The Borrower

  • A Construction and Traffic Safety company located in Toronto, Ontario began operations in January 2017 providing services in temporary traffic control.
  • The company was a startup with a solid equity injection and needed financing for the daily liquidity needs and some term debt financing to acquire additional fixed assets to service the growing needs of the new clients the company was on boarding.

The Situation

  • The business is focused on providing the highest quality roadside safety throughout the province. Services include crash trucks to protect construction work crews, advanced traffic management and roadside flagging, amongst many other safety services. The company’s field crews are trained to control and maintain the safe passage of traffic through work zones allowing drivers to get where they need to go while providing the time and space for construction crews to do their job safely.
  • Certain jobsites are based in cities and towns where traffic approaches from multiple directions or multiple lanes converge. This requires advanced flagging operations with more comprehensive planning, the utilization of more signage and closer communication with the flagging crew. Many of the routine maintenance projects that would require flagging operations as well as emergencies or special events are candidates for portable signals which the borrower also provides.

The Blacksail Partnership Outcome

  • Credit was initially a $500,000 operating line along with $750,000 term loan.
  • Under very capable owners and management, sales grew aggressively and Blacksail increased the operating line to $1,500,000, adding $750,000 for fixed capital assets.
  • It is anticipated that the company will gravitate to more traditional lending in the next 12 months given the company’s positive performance.

 

Learn more about the Garrington Group of Companies structure:

For more information on the Garrington Group of Companies, please visit the website www.garringtongroupco.com.

 

For more information on Blacksail Capital Partners, please contact us.

 

<< Return to News