Credit Evaluation School Instructor eBook - Oct 2023

People:

Borrower ‐ Spring, LLC, Guarantor(s) ‐ Josh X, Howard Holdings, LLC, Thom X Spring , LLC is a local family ‐ owned, 4 th generation commercial printing company. Loan A: Working capital line of credit. Loan B: Refinance/consolidate current term debt. Loan C: A convertible term loan for future capital expenditures. 12 months I/O, then convert to a fully amortizing term of 60 months. Loan A: Monthly Interest Only payments required. Loan B: Monthly Principal & Interest payments required, amortized over 60 months. Loan C: 12 month Interest Only payments, followed by Fixed monthly Principal & Interest payments, amortized over 60 months. Loan A: 80% of eligible Accounts Receivables and 50% of eligible Inventory, to be defined and monitored monthly by a Borrowing Base Certificate. Loan B: First lien UCC filing on ABA. Loan C: Will lend up to 90% on any new tangible equipment. First lien UCC filing on ABA to be substantiated with equipment invoices as equipment is purchased.

Purpose:

Payment:

Protection:

Problem: Prospects:

Clean up the balance sheet and current cashflow

Continue to monitor, borrowing base, payments and financial trends