Venmark replaced fragmented loans and equipment leases carrying owner personal guaranties with a consolidated $7.95 million enterprise facility that, at closing, did not require personal guaranties from the owner/operator.
After more than 20 years of expansion, the restaurant chain had accumulated separate bank loans and equipment leases across numerous operating entities. Uneven unit performance, scheduled debt service, and liquidity constraints made it difficult to close underperforming locations, modernize successful restaurants, and finance new openings.
Venmark developed an enterprise-level financing strategy to replace separate loans and equipment leases with a coordinated credit facility. It combined a refinancing term loan, four delayed-draw term loans for new restaurants, an equipment line for remodeling, and a revolving line for rebranding, technology upgrades, and operating working capital.
Venmark arranged $7.95 million in consolidated and committed financing. At closing, the new facility paid off prior obligations backed by the owner’s personal guaranties and did not require personal guaranties from the owner/operator. The facility provided dedicated capacity for ongoing operations, modernization and new restaurant openings.
The founder’s financing had grown one location and one loan at a time, even as the business became a mature multi-unit enterprise. Venmark shifted the financing discussion from individual restaurant obligations to the needs and potential of the overall business.