SCC is committed to "Keeping the Entrepreneur Dream Alive!"

Sterling Commercial Credit is a family owned and operated service

provider specializing in financing for small to mid-sized businesses,

which includes invoice factoring and asset based lines of credit. Our

financing is secured primarily by Accounts Receivable, Inventory or

Equipment.

INVOICE FACTORING & ASSET BASED LENDINGSTERLINGCOMMERCIALCREDIT.COM

• Financing Transactions Include (not limited to:)• M&A Transactions• Fast Growth• Undercapitalized• Start-Up

• Factoring, Asset Based Lines of Credit (A/R, Inventory or Equipment)

• Companies that report annual revenue $500,000 - $35,000,000

• Credit Facility from $100,000 - $3,500,000

Manufacturing

B2B Service

Distributor

Staffing

Transportation

Tool & Die

Oil & Gas

Government

Wholesalers

Seasonal

www.SterlingCommercialCredit.com810.229.2601 | 800.560.2601

Invoice FactoringA type of business financing which involves the sale of a company’s

accounts receivables, at a discount, to Sterling Commercial Credit

(SCC). SCC takes on the credit risk of a company’s debtors and will be

paid back when the debtors pays the full amount of the invoice.

Asset-Based Lines of CreditProvide businesses with immediate funds and ongoing cash flow

in the form of a revolving line of credit based on a percentage of

the value of the company’s assets, such as commercial accounts

receivable, inventory, and machinery & equipment. Interest is

calculated on the funds advanced.

Many companies use Asset-Based Lending as a constant source of

working capital and borrowers only pay interest on the funds they

draw. Companies also use Asset-Based lending when they haven’t

been able to secure financing through a traditional lender for a

multitude of reasons.

$2.8 Billion in funding since 2004

Sterling One Rate – All Inclusive Factoring Fee

Improve cash turnover with Sterling’s collection experts

Daily Collections Calls; Mid-Month A/R Statements

Invoice Validation to ensure accurate billing and timely cash turnover

No hidden fees

Founding Partner

CNC CAD MACHINE SHOP AND DESIGN

COOLING FAN MANUFACTURING & DISTRIBUTION ENGINEERING CONSULTING

HYDRAULIC MANIFOLD MANUFACTURING

TRANSACTION TYPE: Small Business Administration / SCCLOCATION: OHIO

DEAL SHEET:• Company is a Machining Fabrication CNC Shop in rural Ohio

• Annual Sales Last Three Years Range from $3.5M to $4.3MM

• Open Accounts Receivable $605,000; Made up of 15 Customers

• Bank debt $315,000 - Secured By All Assets: Receivable, Inventory, Equipment

• Real Estate Loan $40,000; remaining on a 20,000 sq. ft. building

COMPANY AND BANK GOALS:• Bank Acquired; No longer funding commercial loans

• Bank has frozen line of credit and no longer allowing for growth

• Company’s aging was over $600,000; Looking for growth capital

• Bank requested depository accounts remain with them

STERLING SOLUTION:• Partnered with SBA Strategic Partner to Re-Finance Building $350,000

• SBA debt financing paid off all short term liabilities and mortgage

• SBA subordinated Accounts Receivable to Sterling

• Sterling provided working capital for growth on 85% of available receivables

TRANSACTION TYPE: High GrowthLOCATION: NORTH CAROLINA, FLORIDA

DEAL SHEET:• Company manufacturers and distributes commercial cooling units in NC and FL

• Annual Sales Last Three Years Range from $11.1MM to $14.9MM

• Open accounts Receivable $1,100,000; Made up of 8 Customers

• Bank debt $900,000 / Trade Payables $750,000

• Equity group invested over $19M in sub-debt over 5-years

COMPANY GOALS:• Lower Cost of Funds - 2 Lenders providing A/R Factoring and Purchase Order Lending

• A/R Factoring Cost of Funds 33%; Purchase Order Cost of Funds 48%

• Seeking single lender that could fund on A/R and Inventory - Eliminate P.O.

• Seeking savings of over $400,000 cost of funds from hard money lenders

STERLING SOLUTION:• Sterling offered over $5M in lines of credit secured by A/R and Inventory

• All purchase order and factoring lenders were paid in full at closing

• Sterling sat on advisory board due to high seasonal spikes in business model

• Sterling met face to face with investor panel and set expectations for summer season

TRANSACTION TYPE: Bank Work OutLOCATION: FLORIDA

DEAL SHEET:• Company provides consulting engineering for mechanical, electrical & plumbing

• Annual Sales Last Three Years Range from $7.1MM to $9.8MM

• Open Accounts Receivable $1,700,000; Made up of 77 Customers

• Bank Debt $1.4M; Required a $300,000 haircut after 18-months of forebearance

• Mezzanine Source $6.0M; Required $400,000 downstruck and $2.0 Million note

CUSTOMER GOALS:• Exit 5/3 Bank forebearance arrangement that was 18-months long and costly

• Rightsize balance sheet with over $6 million of ‘paper’ equity dropping to bottom line

• Locate new partner with strong credit disciplines that understood asset conversion cycle

STERLING SOLUTION:• Sterling offered $3 Million LOC and $350,000 unbilled LOC with 2-monthly draws

• Company bills “monthly” as such SCC allowed for two $174K “payroll” draws to even out cash flow

• Sterling provided 75% advance on “factored’ invoices due to credit risk profile

• Sterling improved over 120 day trend from $600K or 30% of aging down to $300K

TRANSACTION TYPE: Merger & Acquisition

LOCATION: MICHIGAN

DEAL SHEET:• Company is a manufacturing & design shop in Michigan

• Annual Sales Last Three Years Range from $1.3M to $1.8MM

• Open Accounts Receivable $315,000; Made up of 22 Customers

• Bank debt $0 / Trade Payables $110,000

• Second generation ownership; Business started 1974 (54-years old)

OWNER / SELLERS GOALS:• Purchase price was $695,000; All Assets Including A/R & Inventory

• Employee contract at $52,000 per year; Working 30-hours; 2-3 more years

• Youthful new ownership; Grow sales by adding marketing approach

• Payoff past dues with top steel supplier ($60,000) and Landlord ($50,000)

STERLING SOLUTION:• Sterling met with prospective buyer and negotiated LOI terms with Seller

• Sterling provided $385,000 based on $260,000 receivables and $125,000 equipment

• Equipment appraisal confirmed total fixed assets of $312,500 (SCC LTV = 40%)

• Sterling provided advisory service for first 60-days with support consultant on-site

$2,250,000Line of Credit

SERVICECOMMERCIAL ARCHITECT

FLORIDA

$500,000Invoice Factoring

SERVICEIT CONSULTING

MICHIGAN

$1,500,000Line of Credit

MANUFACTURERMANIFOLD DRILLING

UTAH

$500,000Line of Credit

DISTRIBUTORMEDICAL LAB SUPPLIES

NORTH CAROLINA

$500,000Invoice Factoring

TRUCKINGOVERROAD FREIGHT SERVICES

LOUISIANA