Industry: Resort Management Company
Subject: A Colorado-based resort rental property management company specializing in high-end rentals and services.
Circumstance: This company contacted Summit for a short-term bridge loan for working capital. The company maintained a long track record of outstanding service and had an established book of clients. However, poor weather conditions the prior season and business seasonality caused a cash flow shortage. Complicating matters was the fact that the company was in the midst of expanding through a strategic partnership with a group that owned a large number of units that required additional working capital. While the company had good local banking relationships, its assets were already pledged to support existing bank lines and the banking environment was not supporting cash flow loans.
Solution: Summit provided a flexible, short-term, liquidity loan secured by junior positions on the company’s assets and relied on the borrower’s guarantee. Summit was able to close within three weeks and was simultaneously able to consolidate some of the company’s debt to simplify the company’s balance sheet.
Outcome: The company was able to expand and increase both top and bottom line performance, allowing it to repay the Summit loan ahead of schedule. Summit maintained a positive relationship with the company and provided it with a second loan at a later time to fund a similar expansion effort.