The owner of an auto repair business in Highland Park, IL whose lease was up soon, was sick of paying rent and found a nice building to purchase down the street. He went to his bank to get a loan and everything was going along fine. However, one day the banker called the borrower and said that because of Covid the bank could no longer take on a loan like this.
All of a sudden the loan was too risky, even though they had a long relationship together. The owner explained that his auto repair business was not suffering due to Covid because people still needed to get their cars fixed with or without a pandemic. It didn’t matter. It fell on deaf ears.
Now the owner found himself in a real pickle. He had told his landlord a while back that he was purchasing a building and would not be renewing the lease that was ending next month. The landlord had already secured a new tenant for the building so he could not stay even if he wanted to. This was a problem!
He needed a solution quick or he would lose his business. Ivanhoe Capital Advisors stepped in and was able to secure him a bridge loan for 70% LTV and we closed in 3 weeks! The owner had enough time to move his business and not even lose a day of work. He is even saving $1,000 per month owning his own facility now versus leasing the other location. His auto repair shop is now stronger than ever!