CASE STUDY: Commodity Trading
THE DEAL
SIZE: $13.75 Million
LOCATION: Alberta
SECTOR: Commodity Trading
LOAN TYPE: Line of Credit
THE REAL WIN FOR DWA.
The financing obtained by DWA allowed a young and driven entrepreneur to seize an opportunity he had identified in the market, rapidly capturing additional market share and creating new jobs for Canadians.
THE CHALLENGES.
Required an expanded financing commitment in order to hire experienced traders
Existing operations did not justify the increased line size
At the time, a one-person operation
RISK MITIGANTS.
Highly experienced founder
Operating line further secured through a personal guarantee from the owner
AR backed by insurance with highly respected counter parties
Operating line margined on AR when new traders come on board
OUTCOME.
Structured as a US$5 million plus CAD$7 million operating line margined on AR and inventory
Permitted the company to hire experienced traders and materially expand operations
BORROWER TESTIMONIAL.
“We had ambitious growth plans but in order to execute on those plans we required a material increase to our financing commitment.
The team at DWA took the time to understand our objectives, model them in a lender appropriate manner, and delivered a financing package that exceeded our expectations and has allowed us to grow our business beyond our original plan.
We would not hesitate to work with DWA again or refer them to anyone looking for debt capital.”
