What is a Financially Challenged Company?

Many times Companies experience difficulties with their banks for a multitude of reasons, including:

· Lender Fatigue
· Over leveraged balance sheet
· One or more years of negative earnings
· Negative equity
· Change in bank policy
· Bank being acquired by another institution

Most owners and management teams struggle when they find themselves in a position where they have been directed to exit their bank. Many times the bank will tell them they only have 90-days to find a new lender. If management is unsuccessfully in finding a new lender, this usually leads the bank to demand a forbearance agreement which results in:

· Higher interest rates
· A reduction in credit availability
· Quarterly forbearance fees
· Weekly financial reporting

In short, this situation can make it very difficult for owners/management to run their day to day business. There is no reason for a strong ownership and management team to be caught in this situation.

The professional at Marathon Shores have the expertise and knowledge to advise you how to avoid this situation. Marathon has relationships with dozens of regulated and non-regulated financial institutions that are eager to create credit facilities for financially challenged companies. These specialty institutions realize that most of the challenges facing management are industry driven and are normally resolved in 12-24 months. Therefore, their desires for making loans do not hinge on the present earning power of the Company, but rather the quality of the assets, including accounts receivable, inventory, equipment and real estate.

Most credit facilities can be completed in approximately 90-days with maturities as short as 6-months or up to 5-7years. The process includes:

· Introductory Meeting
· Issuance of a Term Sheet that outlines the Credit Facility
· Acceptance of the Term Sheet
· 3-5 day Company review
· Commitment letter
· Closing

Let the professionals at Marathon Shores show you how to ease your company's financial stress.