The Customer
Medical Transport Company
The Challenge
- The client was looking at alternative financing options outside of their traditional bank for additional ambulances that were needed to meet demand and grow their business.
- They needed 10-12 ambulances with a total cost between $1M and $1.5M for 2022 and again in 2023.
- Unfortunately, the advent of COVID-19 had a hugely detrimental effect on their bottom line.
- With their clients unable to make payments to them, they didn’t cash flow and blew through covenants they had with their bank.
Done Deal.
- First National Captial proposed conservative financing with a fixed charge coverage ratio amenable to the client.
- When the client suddenly informed us they may trip covenants, as well, we replaced the FCCR covenants in the term sheet with a tangible net worth covenant and increased the rate by .25%.
- The client was very pleased with the revised covenant and had no problem with the small rate increase.
- For 2023, new debt sources were needed for the client due to their ongoing cash flow issues to finance additional vehicles. First National, through a relationship of trust forged with the client, was able to secure financing to meet their needs.
Business Cycle Volatility
Wider credit appetite for companies in all phases of the business cycle.
