Reviewed existing facilities; negotiated reduced rate and significant reduction in shareholder guarantees
Business Term Loan
Key Outcomes: Balanz was approached by the client to check the renewal of its existing funding facilities.
It was discovered that each of the shareholders of three different pharmacies were guaranteeing the full amount of the loan. Balanz assisted by making a case to the bank that each of the shareholders should only guarantee their shareholding percentage of the business in line with the loan amount.
The bank accepted the argument presented by Balanz, and reduced all the shareholders’ guarantee amounts – this saved approximately $3 million guarantees for each shareholder. Balanz also negotiated a reduction in rates for the client.