PCG was experiencing substantial growth, and needed to free up working capital to continue to expand their operations. They had previously purchased a commercial property before their operations fully supported it, resulting in a deal that their bank was not entirely committed to. Consequently the bank brought in a co-lender on a syndicated mortgage, resulting in higher overall interest rates. Just as the client was set to finalize a refinance on the building, the bank entered a period of substantial staff turnover, significantly slowing momentum on the deal and straining PCG’s capacity to develop their business.

Ashdown Capital was brought in and acted as PCG’s conduit to the bank, relieving some of the pressure on the client to retell their story and position to staff that were new to the file. We were able to negotiate increased working capital in the form of a higher line of credit with better margin conditions, allowing the client greater access to funds. We also secured an increased mortgage amount over the property with improved interest rates, resulting in cost savings of $90,000/year over the term of the loan. The bank also agreed to the release of personal guarantees and removal of a personal residence as security. Ashdown was able to take some of the stress out of financing negotiations for PCG, while securing the best possible financing package and providing personal peace of mind.

“We were introduced to Kern and Ashdown Capital in a social setting and were very glad we met. As we were about to embark on a journey to see if we should switch banks, Kern took that over and we ended up with two interested parties and have been very happy with the one we selected. Kern made the process of talking to banks, and getting good rates and favourable terms, very easy. We would recommend Kern and Ashdown to any companies evaluating their banking relationships.” Trevor Young, Owner/Partner, Portal Crane Group

• Line of credit
• Mortgage
• Letters of credit