Recently I had the opportunity to meet Carolyn McClure of Loeb at an event and wanted to learn more about her and share that with you. So the following is an interview with Carolyn that covers what Loeb does, how she got into the industry, our lightning round of off-topic questions, and more!
Shane Mahabir: First, please tell me who you are, where you're from and based, and why you are in Finance.
Carolyn: My name is Carolyn McClure and I have 26 years of experience working as a direct lender in the alternative finance industry, based out of St. Augustine FL with Corporate HQ in Chicago, IL. I enjoy working in finance as I can speak with a variety of business owners every day and learn about their businesses, their working capital needs, and how I can assist them.
What were you doing before this?
I have worked with many forms of finance from factoring to supply chain finance, purchase order funding to asset-based loans.
Tell me more about what your company does, the products you offer, and guidelines.
Since 1880, Loeb has provided auction and liquidation services for machinery and equipment, appraisals since the 1960’s and asset-based loans, lines of credit and sale leasebacks since the 1990’s. We also offer debtor-in-possession financing.
Capital Stack Preferences: Senior, 1st position on machinery and equipment.
Preferred Structures: Asset-based loans, lines of credit and sale lease backs against M&E (only), covenant free, 2-to-3-year terms amortized over 4 to 5 years.
Loan Amounts: $1MM to $20MM forced or orderly liquidation value, 60% to 90% advance depending on the industry (i.e. out in an oilfield/coal mine is 60%, rolling stock 75% to 80%, manufacturing/bolted to the ground 80% to 90%). We are an auctioneer, so we are basing our loan approval on the secondary market, the demand and the liquidation value. We will not decline for credit score, financials, revenue, cash flow, etc. If there is a demand for the M&E, we will fund the company.
Return Profiles: Prime + 5 to 10%, 4 points at close with 2 points going to the broker, appraisal/due diligence, and legal due when term sheet is signed. 4 weeks to fund from signed term sheet.
Industry Preferences: We are industry agnostic except we do not work in aviation, rail, marine, farm, or with IT. We do not lend against equipment made in China or proprietary equipment invented by that company.
Additionally, we provide auction, liquidation, and appraisal services. We pay 10% of the gross margin for these referrals.
For financing, we pay 2% of the loan amount. No broker agreements, it is written on the term sheet and closing statement.
And what do your days consist of?
The majority of my day is spent connecting with referral sources. I am also tasked with the initial review process of an applicant and presenting of the term sheet.
What are your goals for this year?
Growing our loan portfolio, facilitating auctions, appraisals, and liquidations
Biggest challenges right now?
We are extremely busy so it is imperative that our referral sources are familiar with our products and when we will be a good fit for the client.
What types of things keep you motivated?
I am self-motivated and I enjoy the sales cycle, every day comes with new momentum.
Now it's time for the lightning round!
What's your largest deal in your career?
$18MM
Do networking events help you?
Absolutely, people buy from people.
Do you use generative AI?
Never
Will you ride in a driverless car?
Maybe down the block, I love to be in control, so I won’t last long in this environment.
What is your favorite country you have visited?
South Africa
If you could go anywhere, where would it be?
Australia
Should there be laws for politicians prohibiting insider trading?
10000%
Do you prefer Bitcoin or gold?
Neither
Last question. Regarding the commercial finance industry, which is a large umbrella of lending products, what if anything would you change?
I would change one thing, it would be to implement a national credit database to track business owners' loan activity, collateral, credit scores, financials, tax returns etc. Similar to what is done on the consumer side.
What's the best way for folks to get a hold of you?
Carolyn McClure
VP of Business Development
773-496-5712 (Direct/Mobile/Text)
carolynm@loebequipment.com
Awesome