| Borrower | Cannabis cultivation business with multiple MCAs |
| Collateral | Two buildings, ~$4M inventory, ~$4M equipment, ~$1.5M equity pool |
| Request | $10M term facility |
| Product | Private credit |
The problem
Non-bankable industry, stacked merchant cash advances, and a need for one large facility.
How it was structured
- Asset-based: the lender looked at everything the business owned, not the industry.
- 12% cash interest plus 6% PIK, meaning part of the interest accrues and is paid at maturity instead of monthly.
Why it didn't close
The property value came back low, which broke the collateral math the facility depended on.
What this means for you
Private credit can fund businesses banks won't touch, at high-teens pricing with all assets pledged. Get an early read on real estate value before anything else.
In a similar spot? Get soft numbers on your deal
Why this deal was hard
Each one links to a full guide on how it gets solved.
Industry gets declinedWhy some industries trip lender exclusions, how wording can cause a decline, and who still lends.How it gets solvedExisting MCA debtHow stacked MCAs affect approval, why lenders worry, and how to build the payoff into a longer-term loan.How it gets solvedAppraisal came in lowWhy lenders size loans off appraisals and cost basis instead of your number, how often it happens, and what to do about it.How it gets solved
Anonymized; amounts may be rounded. Terms as issued by the lender.