SLIM Capital Completes $2.2MM Funding for Tire Shredding Company
SLIM Capital completed a transaction totaling $2.2 million in August for a tire shredding company in the Lone Star State. These long-time tire recycling veterans have been recycling used tires from various facilities throughout Texas.
As part of the tire recycling process, there was in excess of 80 percent of the inventory that was going to waste. They came to SLIM Capital looking to purchase a $2.2 million tire shredding machine that will allow for this wasted material to become useful mulch and raw materials in other sellable products. The challenge with the deal was that there were significant distributions of equity due to a divorce settlement as well as tight cashflow in SLIM Capital’s debt service calculations. Upon speaking more with the lessees, the company learned that they were spending in excess of $500,000 in landfill and transport costs related to the unusable materials. SLIM Capital managed to add this figure into its calculations and were able to get comfortable with 100 percent financing with no additional collateral. This new opportunity will create a yearly revenue of over $1 million a year – helping the environment one tire at a time!
This transaction along with the many others that were funded in August spanned a spectrum of industries and asset classes, including transportation, equipment rental, medical, information technology and construction.
SLIM Capital, LLC is a nationwide direct finance company that specializes in financing equipment acquisitions for its clients.