PreparationFinancial Documentation• Historic balance sheet and income statement (3 yrs).• Current period balance sheet and income statement.• Projections including cash flow, balance sheet and income statements.• Accounts receivable and accounts payable agings (summary anddetailed).• Contracts or purchase orders.• Customer list.• Personal financial statements and resume(s).• Inventory reports.• 2 years personal and business tax returns.
About Hennessey CapitalHennessey Capital is a division of Hitachi Capital America Corp. andprovides working capital funding up to $5 million for B2B companies who are“pre-bankable” but “post-revenue” using receivables, inventory, andequipment as collateral. Financing options include factoring and asset-basedlines of credit.Factoring by invoice• Accounts receivable used as collateral• Example: for every $100, $85 advance is paid at time of invoice with thebalance ($15 less interest) paid when customer’s payment is received.Asset-Based Line of Credit• More traditional revolving line of credit, similar to a bank• Accounts receivable, inventory, and equipment used as collateral• Requires more reporting than factoring
FactoringUsed for business to business companies in manufacturing, service &distribution industries.Limited track record or rapid growth.Leverages up to 90% of invoices for immediate cash.Bridge A/R collection and A/P payment gap.Can be used in conjunction with current bank facility.
Asset-Based Line of CreditEstablished business to business sales companies.Restructure current bank debt, successor financing to factoring orflexible tool for long term needs.Leverage asset classes to maximize cash-accounts receivable,inventory, machinery and equipment or real estate.Used as a stepping stone to traditional bank financing.
Cooperative & ComplementaryHennessey Capital works closely with banks to help businesses grow.Complementary• We do not require 3 years of profitability• Past losses are ok; a prior bankruptcy is not a deal-killer• Personal net worth is not a focus• Typical client is non-bankable• Allows the business to establish a profitable history of performance andbecome “bankable” to transition to a traditional banking relationshipCooperative• We can work with your bank on the front end in the early stage of yourbusiness or later on if you need more than your existing bank line of credit.• We can offer a complement to existing line of credit.• Your bank has your business banking account throughout.
Recent TransactionsFactoring• Local Chocolate Company: $100K facility to provide working capital• LED Lighting Company: $750K facility to fund new sales growth• Epoxy Manufacturer: $250K facility to support staff payroll and purchaseproduction materials• Staffing Company: $100K factoring facility for working capital to growAsset-Based Line of Credit• Duct Manufacturer: $1M A/R supported line of credit to ramp up sales andachieve profitability• Steel Wholesaler: $500K line of credit to increase working capital• Data Monitoring Company: $1M A/R & inventory supported line of credit tosupport growth
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