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    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

    Recent Activity & Deal Case Study 

    September 29, 2020

    Recent Activity & Deal Case Study 

    Dear clients and partners,

    Now, over six months into COVID-19, we have had an opportunity to reflect on the new normal in business to business lending. We have learned a lot by listening to and understanding the changing needs of our borrowers. We are confident that we will be able to continue to do our part in helping with an economic recovery by working with our referral sources and end borrowers to deploy as much capital as possible.

    In keeping with our philosophy of providing borrowers with a quick response to their requests and the ability to work through complex loan agreements; we have been able to actively fund several deals over the last six months. In addition, we have been able to help borrowers who did not qualify with us find funding through our network of lenders.

    Since the start of the pandemic in March, we have seen over one hundred requests and funded 23 smaller factoring and ABL deals for approximately $20MM.

    Currently, our capital position is strong, and we are actively seeking:

    • Factoring deals from 200M to 10MM
    • Asset Based Lending deals from 1MM to 20MM

    Canadian Trucking Service Company 

    The Recent Borrower

    A Canadian trucking service company providing procurement, transportation, trans-loading, storage and hauling of required materials to oil and gas drilling companies in Western Canada. The company had established a good revenue stream in 2013 and 2014 with many good Exploration and Production energy companies as counter parties to their services. The issue the company faced was a downturn in the market in 2015 – 2016.

    The Strengths of the Company

    • Established business with a good customer base dating back to 2012 – 2013.
    • A management group with a great understanding in servicing the oil and gas exploration companies.
    • A well-established infrastructure of suppliers of fracking products, storage, and the movement of product (railways, etc.) to effectively service the oil fields.
    • A realistic vision to develop new industry verticals once their developed software package became proven.
    • More recently developed a new hauling technique that made their operation even more efficient in 2016.
    • A shift by exploration companies moving away from offshore production and a renewed focus on low-cost shale projects that require hauling companies.

    The Situation/The Challenge

    • The timing of cash flow and improving invoice accuracy.
    • Needed to better track product.
    • The Energy downturn over the last several years (2015 and 2016).
    • Reduced shale activity in the US and Canada throughout 2015 – 2017.

    The Blacksail Partnership Outcome

    • $4,000,000 line of credit utilized to smooth out operational cash flow.
    • Offset slower accounts payable.
    • Facilitate quick pay outs to sub contractors and therefore factoring all invoices.
    • Tightening of the cash cycle through COVID-19 where suppliers were looking for faster payment on services rendered to help the company maintain a good working relationship with their network of suppliers.

     

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

     

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