When a Colorado-based CBD manufacturer found itself with limited cash flow, they needed to find a way to unlock the capital of unused equipment sitting in storage. After initially exploring an equipment-backed loan, the company hired Loeb to develop a more strategic path forward through an industrial equipment liquidation.
The Challenge: Monetizing Unused CBD Manufacturing Equipment
The company had specialized CBD manufacturing equipment that was no longer being utilized in daily operations. Much of the machinery had been stored in a crowded equipment room, tying up valuable space and capital.
Initially, the client approached Loeb seeking a loan against the equipment. However, because the collateral pool had machines of foreign import, traditional financing options proved more limited.
The company needed a partner that could think beyond conventional lending and help maximize the value of underutilized assets.
Why Loeb: Flexible Industrial Equipment Solutions Backed by Industry Expertise
The client selected Loeb because of its ability to provide flexible solutions tailored to complex industrial asset situations. Rather than forcing a financing structure that wasn’t the right fit, Loeb leveraged its industry network and brought in specialized partners with experience in this equipment category.
This flexible approach allowed the client to pursue an alternative strategy focused on equipment monetization and asset recovery.
The Solution: A Strategic Equipment Liquidation Approach
Loeb worked with the client to identify the best path forward for converting unused equipment into working capital. By coordinating with partners experienced in the CBD and supplement manufacturing sector, Loeb helped position the equipment for sale and maximize market visibility.
The process focused on efficiently monetizing assets that had previously been sitting idle while minimizing disruption to the company’s ongoing operations.
The Outcome: Improved Cash Flow Through Equipment Asset Recovery
The equipment liquidation generated approximately the working capital the company needed to improve cash flow while clearing out unused equipment occupying valuable storage space.
More importantly, the project demonstrated how strategic industrial equipment liquidation can help manufacturers unlock value from underutilized assets, even when traditional equipment financing may not be the best fit.
