Nurturing a healthy relationship with your banker and other lenders is key to the success of growing your business.
Such relationship-building entails providing accurate and timely financial statements and well-vetted financial projections, while initiating open, frequent communications with your lenders.
You want your lenders to have a strong level of comfort with you and your business, and we can help you achieve that.
In addition, when your situation calls for a new or additional lending relationship, we can assist you in the process of securing business funding, by matching your needs with optimum financing alternatives.
Over the last twenty-five years, we’ve learned what financial institutions look for in a corporate borrower and how to best approach them when seeking a business loan.
Furthermore, we’ve developed relationships with a large network of lenders who trust our ability to provide accurate, reliable client analyses.
Case Study: Mapping Out the Solution allows for a Triumphant Return
$10 Million Restaurant Group
COVID-19 and the resulting capacity restrictions brought a successful restaurant group to its knees. Ownership as well as the group’s lender questioned its viability.
Working with ownership/management, Sutker Advisors developed financial projections for each restaurant, modeled to easily evaluate various scenarios given the uncertainty of the situation. Sutker, then, analyzed various components of the operation which was used by management to identify cost reductions. After incorporating these reduced costs into the projections, Sutker modeled the payment deferrals it needed from its lender and landlords in order to survive. Armed with a plan, Sutker was able to negotiate and agree upon a deferred payment plan from its lender as well as its landlords. These deferrals allowed the restaurant group to survive until obtaining government relief and the eventual lifting of capacity restrictions.
Case Study: Here Comes the Calvary!!
$100 million IT-based solutions provider
A highly successful $100 million IT-based solutions provider urgently needed an interim Controller after the permanent Controller and the Company suddenly parted ways. The Company was in the midst of discussions with various private equity groups regarding a partial sale, switching banks, an upcoming annual audit beginning, as well as an ERP conversion.
Referred by the Company’s lender, Sutker Advisors was hired (or as the Company’s owner referred to Sutker as “The Calvary”) as the interim Controller to facilitate the audit as well as manage the accounting staff. Sutker, first, corrected the financial statements. Then, Sutker successfully managed the Company through the audit process. Impressed with Sutker’s responsiveness and quality of work, the Owner ended his search for a W2 employee and hired Sutker full-time. Sutker now provides full-coverage CFO/Controller services at significantly less cost than a W2 employee, that started with the bank transition, managing the ERP conversion, as well as performing all financial duties related to the partial sale.
Case Study: The Bank and The Company Working Together to Solve a Problem
$100 Million Trucking Company
A historically profitable $100+ million provider of temperature-sensitive transportation services lost a major customer. Coupled with the downturn of the oil and gas fracking industry, the Company had severe liquidity issues.
Through various financial analysis and working with the management team, $6.1 million in profit improvements were identified and implemented. Through negotiations with each secured lender, the annual principal and interest payments were reduced by $5.3 million or $442 thousand per month. The Combination of profit-enhancements and principal re-amortization provided sufficient liquidity and resulting profitability.
Case Study: Finding a Lender Who Fits Better
$12 million Engineering Services Firm
An engineering-based, construction-related firm had a really bad year due to poor non-core investments and excess overhead as anticipated revenue did not materialize. On its own, the Company shed the investments and right-sized its operations to match its anticipated revenue. However, their lender, already adverse to construction-related companies, no longer wanted to bank them. Furthermore, their Controller resigned during this period.
Sutker took on the interim Controller tasks. Sutker also developed a comprehensive refinancing package that including a detailed financial analysis showing the Company’s path from an unprofitable year to its projected profitable year, as well as presented their upcoming working capital needs. Confident about the credibility of the Company’s plan, Sutker reached out to several lenders who were not averse to the construction industry as well as whose customer base and culture matched that of the Company. Sutker negotiated the lending agreement with the new lender on behalf of the Company.
Case Study: A Bank Prospect: A Burgeoning Business with no Financial Plan
$120 Million Cell Phone Wholesaler and Distributor
A high-net-worth individual started a turnkey cell phone wholesale and distribution company with three interconnecting companies. He self-funded the rapidly growing company with $10 million as the Company reached $40 million in annual revenue.
Confident about the upward trajectory of his business, the owner reached out to a Chicago-based bank to provide a working capital loan to fund the growth. However, to this point, the accounting was done “out of a shoebox” and there was no financial information supporting his working capital line request.
With a complicated turnkey business model that has thin margins, the Bank needed to gain comfort with the business and what the true capital need was.
The lender referred us to their prospect. We assessed the business and developed a financing memorandum that thoroughly explained the model and provided financial projections that mapped out the initial working capital need.
With a satisfactory comfort level, the Bank approved a less than maximum working capital line with the understanding of a six-month revisit to determine if additional capital was needed.
Sutker, then, developed processes and procedures to provide timely and accurate financial information to the owner and lender which led to formally becoming the Company’s Outside CFO and key member of the management team.
Now, a year-and-a-half since the start of our engagement, the Company’s current run rate is $120 million with a projected $2 million in net income with additional working capital support from its Lender.