For one California-based organics recycling company, waste isn’t the end of the line. It’s the beginning of something useful.
The company takes food waste from supermarkets, depackages it and puts it back to productive use. Approximately 92% of the material it processes is converted into organic animal feed sold to farmers, while the remaining 8% is converted into oil used for energy.
It’s a business model built around keeping food waste out of landfills. And when the company needed financing to support its next stage of growth, we saw an opportunity worth backing.
Traditional lenders were uncomfortable with the company’s paper losses and relatively short operating history under new ownership. We took a different approach.
By focusing on the strength of the equipment and the underlying value of the company’s assets, the Loeb team was able to provide $3.85 million in equipment financing, giving the business the capital it needed to continue growing and consolidate its operations.
The Challenge: Securing Equipment Financing for a Growing Recycling Business
The company had a compelling business and valuable equipment, but its financial statements presented challenges for traditional lenders.
The company had experienced paper losses and had been operating under new ownership for less than two years. Those factors made obtaining conventional financing difficult, despite the value of the equipment supporting the business and the opportunity ahead.
They needed a financing partner willing to look beyond the financial statements and understand the assets and the business behind the numbers.
That’s where our approach was different.
Why Loeb: Asset-Focused Equipment Financing with Flexible Underwriting
Our underwriting process places significant emphasis on the value and quality of the equipment supporting a transaction.
After evaluating the company’s assets, we saw an opportunity to structure financing around the strength of its equipment rather than allowing a limited operating history and paper losses to tell the entire story.
We also liked what we saw firsthand. The equipment was well maintained, and the company’s team was a pleasure to work with throughout the process.
Most importantly, we were confident we could deliver what we said we would and the company was confident, too.
That meant staying flexible as challenges emerged, communicating clearly and working closely with everyone involved to keep the financing moving forward.
The Solution: $3.85 Million in Equipment-Backed Financing
We ultimately provided $3,85 million in equipment financing to the organic recycling company.
Getting there required more than simply evaluating the assets and approving the transaction. We also worked extensively with the company’s landlord to develop an agreement that worked for all parties and allowed the financing to move ahead.
That flexibility was critical.
Rather than allowing an obstacle outside the core financing structure to derail the transaction, our team worked through it and found a practical path forward.
The financing gave the company additional capital to continue growing while also helping them move out of one of its locations and streamline its operations.
The Outcome: Financing Growth for a Sustainable Recycling Business
With nearly $3.85 million in financing, the organics recycling company gained the capital and flexibility it needed to continue expanding a business built around putting resources back to work.
For us, the transaction was also a great example of why asset-focused lending can make such a difference.
Financial statements don’t always tell the whole story. By taking the time to understand the equipment, the business, and the people behind it, we were able to see an opportunity that traditional financing approaches could easily overlook.
And in this case, the result went beyond financing equipment.
We helped provide growth capital to a company working to divert food waste from landfills, transform organic material into useful products, and create more value from resources that might otherwise go to waste.
That’s a deal we were proud to be part of.
