This transaction began as a $1 million hypothecation loan. The company grew dramatically and the relationship has grown to $34.2 million, including $2.7 million in inventory loans. The majority of the loans have been participated to financial institutions, with Colebrook retaining the servicing relationship. This allowed the developer to receive the lower rate warranted by their augmented financial condition, while maintaining the continuity of the Colebrook relationship.

Our customer had been selling receivables to a company that accepted only A profile credits. They therefore had accumulated a sizable portfolio of B credits which tied up a large portion of their capital. Colebrook provided the company with a hypothecation loan for A credits and a purchase facility for the B credit receivables. The developer was able to use proceeds from the purchase facility to construct additional inventory and meet working capital needs.

Our customer, who operates a large hotel with a timeshare component, had no receivable financing and was holding all of its own contracts. This resulted in a continual cash flow drain from the timeshare operation, even though it was very profitable. We extended a $1 million hypothecation line, which we later increased to $2.5 million. As the relationship progressed and grew and we had satisfactory experience with the receivables, we increased the advance rate and lowered the interest rate.

This developer has acquired inventory at a number of resorts in the western part of the United States. Most lenders have difficulty cost-effectively financing receivables generated at different resorts, but Colebrook was able to structure a $3 million line of credit which covered seven projects. The second portion of our relationship was an $850,000 revolving inventory loan which financed the purchase of a number of intervals at an established resort. When the initial $3 million loan was fully utilized, Colebrook extended a new $6 million facility, at a lower interest rate.

Colebrook purchased this portfolio from a bank and has been instrumental in working toward a resolution of the problem. Colebrook’s expertise and industry contacts enabled us to find a creative solution, with an investment of time and resources that the seller, one of the world’s largest institutions, couldn’t justify.

Colebrook has a relationship with a company that manages resorts across the United States, Canada and Mexico. We have made loans to the associations at a number of the resorts, principally for capital improvements. Working with the management company, Colebrook has streamlined the application and closing processes to make the relationship work smoothly for the associations. By financing the improvements, the associations are able to spread a special assessment over a number of years, while completing needed improvements quickly and cost effectively.

If you’re interested in something that’s not listed above, call us. Some of the best new ideas are outside the box.