After years of stable cash flow, Lonsdale Event Rentals had outgrown their existing facilities and decided to streamline their business by consolidating their three locations into one much larger one. In doing so, they incurred a tremendous amount of moving costs, business disruption, and one-off fees that negatively impacted that fiscal years’ results. Their existing bank failed to take the time to understand the full story behind the issues they were experiencing and the positive impact the move was going to have on their business going forward. It had got to the point where they felt their existing bank was becoming more of an inhibitor of their success rather than a partner in it. At the same time, the business was booming so ownership didn’t have time to seek alternate financing arrangements. Lonsdale Events’ principal Chris was advised to engage Ashdown to lead them through the process.

After looking at the business and understanding the temporary situation at Lonsdale Event Rentals, we normalized their earnings and prepared a full deal summary and proposal to help prospective banks understand the situation. The proposal was well-received and resulted in multiple banks putting forward financing offers. In the end we were able to get them an increase in working capital as well as term financing to expand their rental inventory; all at lower rates than they had at their current bank and most of all, a financing partner that believed in their business. As a result, Lonsdale Event Rentals was able to navigate the temporary set back and is now having record months, month after month.

• operating line of credit
• equipment loan