Financing for a company in the plastics trading sector - bridging loan
A few months ago, PrestaFlex financed a bridging loan for a plastics trading company based in eastern Switzerland
The aim? The company was planning to expand and gain ground. A considerable cash injection was therefore required.
What financing difficulties did the plastics trading company encounter?
The structure of the company's financial statements did not justify external financing. To guarantee the financing of a bridging loan, we advised them to increase their share capital, with the aim of obtaining a solid balance sheet and a much larger share of equity.
A bridging loan: the ideal solution for a plastics trading company
A bridging loan enables you to seize a market opportunity that can't wait, despite the lack of liquidity a company may be experiencing. In the case of the plastics trading company, this was an opportunity for growth. Thanks to a bridging loan, PrestaFlex provided the immediate liquidity required to realize the growth project.
This type of financing can also be used for other types of project, as is often the case in the real estate sector.
PrestaFlex was able to finance an additional CHF 200,000 to the initial request of the plastics trading company
Initially, the plastics trading company requested CHF 450,000. Following the balance sheet restructuring advised by PrestaFlex, we were able to offer them a bridging loan of CHF 650,000. The plastics trading company was then able to free up CHF 200,000 in additional liquidity for its growth project.
The terms of the bridging loan were as follows..
- Objective = release maximum liquidity to continue financing working capital
- A 36-month bridging loan
- Flexible repayment term, with monthly repayments (constant annual instalments)
- No penalty for early repayment, can be repaid at any time
- Amortization and interest included in the monthly payment
More details under: Crédit relais, the commercial loan for a market opportunity
Written by: Gabriel Oberson, financing consultant at PrestaFlex & Arij Kamel, marketing trainee at PrestaFlex, Fribourg
