Great Opportunity, Overleveraged Balance Sheet
As a commercial lender, asset-based lender, or private debt fund, you frequently evaluate business opportunities that make complete strategic sense — except for one major hurdle: an overleveraged or chaotic balance sheet.
Whether your prospective borrower is saddled with high-interest merchant cash advances (MCAs), junior debt, vendor line arrears, or subordinated obligations, their debt-service burden prevents your credit committee from approving the loan.
You want to fund the deal. The borrower needs the capital to grow or execute a turn-around. But the risk profile on paper simply doesn't work.
Pre-Loan Commercial Debt Workouts
Turnaround Firm bridges the gap between distressed balance sheets and lender approval.
We serve as an independent, third-party workout specialist hired to restructure, settle, and clean up a prospect's unsecured debt and subordinated liabilities prior to or concurrently with your loan closing.
By reducing the borrower's total debt load and improving their debt-service coverage ratio (DSCR), we transform unbankable applicants into credit-ready borrowers.
Why Lenders Partner With Us
100% Success-Fee Structure
We align our incentives entirely with the transaction. We only get paid if we successfully restructure the debt and the deal closes. There are no upfront retainers or hidden costs for your firm or the borrower. If we don't clean up the balance sheet to your underwriting standards, you owe nothing.
Turn Unbankable Prospects into Closed Loans
Stop turning away solid management teams or valuable assets due to manageable debt burdens. We negotiate aggressive, legally binding settlements and debt workouts with junior creditors, MCAs, and vendors, creating the clearance required for your primary lien position.
Clear First-Lien Security & Debt Isolation
We ensure all settled creditors sign full releases and UCC-3 terminations where applicable. We structure workouts so that senior debt remains fully protected and free from subordination conflicts or competing liens.
Accelerated Deal Timelines
Negotiating with multiple aggressive creditors requires specialized expertise and dedicated focus. Our team moves swiftly to settle debts and establish manageable repayment schedules, keeping your deal pipeline moving and preventing deal fatigue.
Our 4-Step Process for Lenders
01
Referral & Analysis
02
Custom Settlement Strategy
03
Execution & Release
04
Loan Closing
Initial Credit Review
You introduce us to the prospective borrower. We conduct a confidential analysis of their liabilities, subordinate liens, and short-term debt obligations against your credit committee's underwriting targets.
Strategy & Target Agreement
We establish clear settlement benchmarks required for your loan approval (e.g., reducing monthly debt service by 50%, removing specific junior liens, or settling unsecured debt for a target percentage).
Negotiation & Settlement
Our senior workout specialists negotiate directly with creditors, securing discounted payoffs and legally binding debt-satisfaction agreements.
Funding & Success Fee Payment
Upon closing, our success fee is disbursed from closing proceeds as a negotiated line item, leaving your borrower with a healthy balance sheet and your institution with a fully secured, bankable credit facility.
Who We Work With
We work with commercial banks, ABL lenders, mezzanine funds, and private equity sponsors financing prospects with the debt profiles below.
Qualifying debt profiles
- High-cost alternative finance obligations (MCAs, high-rate term loans).
- Accumulated vendor/supplier trade debt impeding liquidity.
- Defaulted junior debt or uncooperative subordinated lenders.
- Distressed M&A or acquisition targets requiring debt cleanup prior to closing.
Partner With Turnaround Firm Today
Don't let a cluttered balance sheet stand between you and a profitable lending relationship. Let us handle the complex debt negotiations so you can focus on underwriting and closing transactions.