Case Studies
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Gas Station Case Study
This gas pump repair and installation business ran profitably for years. However, in 2008 the economic downturn in combination with the completion of upgrades to all gas pumps within the state caused the business to come to a screeching halt. The economic downturn resulted in very few new gas stations opening and needing new product. The fact that the state mandated that all gas pumps be upgraded recently meant that very little repair was needed. The guarantor, left without his business, was now facing a $350,000 shortfall on a business loan and $485,000 shortfall on real estate loan. We wound down the business, liquidated the assets, and settled two SBA loans, one as a term payment with no interest, removing all personal guaranties of the client.
Total Debt Outstanding: $850,775
Payoff of Personal Guaranty: $39,000 ($15,000 lump sum, $24,000 paid over time)
Total Debt Forgiveness: $811,775
Attachments:
Gas Station RepairCalifornia
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Printing Company Case Study
This printing and promotional business in Southwest Florida experienced decades of healthy profit until the Fall of 2008, when Florida's economic meltdown began and businesses were closing faster than they were opening. It quickly became apparent that without drastic measures, this business' secured SBA lender would forcibly wipe them out. We successfully managed to strip hundreds of thousands of debt off and preserve the underlying business opportunity.
Total Debt Outstanding: $300,000
Payoff of Personal Guaranty: $14,600
Total Debt Forgiveness: $275,400
Attachments:
Printing CompanyFlorida
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Advertising Company Case Study
This custom embroidering company took a hard hit during the financial downturn of 2008. Cuts were made across the board, including the laying off of staff, moving to a smaller location, and the slashing of salaries. Still, the debt payments were crushing and it was only a matter of time before the business entered default with its secured creditor. Second Wind was able to successfully negotiate a buyout of the assets, which preserved the business opportunity and prevented the additional loss of several jobs. In addition, the former owner's personal guarantee was settled for pennies on the dollar.
Total Debt Outstanding: $290,000
Settlement of Personal Guarantee: $10,000
Total Debt Forgiveness: $270,000
Attachments:
Advertising CompanyNorth Carolina
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