FEATURED CASE STUDY – 05
Unlocking $10M in Equipment Financing for Global Expansion
About
Innovative Cross-Border Financing for EV Program Growth
A $500M Tier II automotive supplier required additional capital to fund new EV program investments. The privately held company sought to raise debt-based financing without equity dilution.
The client operated under a dual structure. A U.S. parent company with manufacturing subsidiaries in Mexico. Traditional lenders were unwilling to finance equipment located in Mexico due to differing legal enforcement mechanisms, leaving a significant portion of their capital locked in equity-funded assets.
Problem
Limited Financing Options for Mexico-Based Equipment
Most lenders avoid extending credit to Mexican subsidiaries due to complex legal frameworks. This prevented the client from leveraging valuable in-place equipment to raise capital for EV program investments.
Goal
Access Debt Capital Without Equity Dilution
The company needed to unlock liquidity through equipment financing while maintaining compliance with its existing ABL and term loan structures.
Solution
$10M Equipment Finance Facility for Mexico Operations
We introduced a non-bank lender experienced in cross-border asset finance. The resulting $10M facility leveraged existing in-place equipment in Mexico, providing the required liquidity under the company’s ABL covenant structure while preserving ownership and control.
Cross-Border Equipment Financing Strategy
Our process combined in-depth knowledge of U.S.–Mexico manufacturing law with targeted lender relationships to create a structure that satisfied both jurisdictions’ requirements.
Phase 1
Identified capital bottlenecks in Mexico-based operations
Mapped legal and structural barriers to traditional lending
Engaged select lenders with proven cross-border experience
Phase 2
Facility Structuring & Negotiation
Designed $10M debt facility backed by existing equipment
Ensured compliance with ABL and term loan covenants
Negotiated favorable terms for non-bank financing
Phase 3
Implementation & Long-Term Alignment
Deployed funds to support new EV programs
Strengthened balance sheet liquidity without equity dilution
Established foundation for future international financing rounds
Result
$10M in New Liquidity to Fund EV Program Expansion
The client unlocked $10M in additional capital by financing existing assets, supporting rapid scaling across new EV initiatives.
The solution demonstrated how strategic structuring and non-bank relationships can overcome cross-border lending challenges, preserving ownership while enabling innovation.
CASE STUDIES
