Issue #2: Rate Wasn't the Problem. The Closing Date Was.

A representative deal from the last few months, anonymized.

The situation

A lower-middle-market distributor (SIC 5065, electronic parts and equipment) had a chance to buy a bulk inventory lot at a steep discount. The catch: the offer was only good for 10 days.

The company's bank could have underwritten it eventually. Just not in 10 days.

The structure

• Need: roughly $3M against inventory and purchase orders.
• Position: 2nd lien, behind a senior lender already in place.
• Term: short-term bridge, up to 12 months, interest-only.
• Takeout: refinanced by the company's own ABL line once the inventory turned.

The lesson

The discount more than covered the cost of speed. The advisor who brought us the deal kept the client for life, not because of the rate, but because the money actually showed up on the day it was needed.

The reframe: the cheapest capital is the capital that shows up on time.

If you're sitting on a deal where the constraint is the calendar and not the credit, that's exactly my lane, $250K to $10M, 1st through 3rd lien. Send it my way.

Tim