$2.5M Business Loan Secured by Home Equity Helps Cabinet Manufacturer Stabilize Cash Flow

Client: Canadian Kitchen Cabinet Manufacturer $2,500,000 Revolving Credit Line Secured Against Residential Real Estate 

Facility Size: $2,500,000 

Rate: Canadian Prime Rate (No Premium)

A successful kitchen cabinet manufacturer encountered a sudden cash-flow squeeze caused by delayed payments from several large clients. Though the company had a strong order pipeline and significant equipment in place, the timing gap between receivables and payables began to jeopardize payroll, supplier obligations, and overall business continuity. To maintain financial stability, the company urgently required a business loan to support its working capital needs.

Despite the company’s proven track record, traditional lenders were unwilling to offer working capital financing without liquid or immediate collateral—leaving the client at risk of stalling operations during a period of high demand. A flexible business line of credit was required to bridge the gap between receivables and obligations.

To resolve the issue, Syndicate Lending Corporation structured a $2.5 million business loan in the form of a revolving line of credit secured by first-charge mortgages on two owner-occupied residential properties. We partnered with a major Canadian chartered bank, fast-tracked property valuations, and demonstrated the business’s robust projected cash flow to obtain approval. This cash flow financing solution ensured the company could meet its obligations without compromising growth.

The facility was granted at the Canadian Prime Rate—without any interest rate premium, annual reviews, or re-underwriting requirements. This provided the client with immediate and ongoing access to liquidity, allowing for both short-term stability and long-term growth. The business loan was secured through home equity, offering an innovative solution when traditional working capital options were not available.

The impact was immediate. The client drew on the line to cover payroll and pay suppliers without delay, while also leveraging the facility to take advantage of early-payment discounts on bulk materials. With financing secured at the bank’s best rate and no annual renegotiations required, the client gained peace of mind and the freedom to focus on expansion.

Syndicate Lending Corporation’s ability to structure a business loan using residential real estate as collateral ensured the business could weather cash-flow challenges and continue scaling with confidence.

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