Credit Products & Services

Credit Products & Services

White Oak provides small and middle market businesses with term loans, asset-based lending, invoice factoring, trade finance, equipment financing and treasury management. With over $7 billion of capital invested in over 500 companies throughout the U.S. and Canada, we understand the unique challenges facing small and middle market businesses.

Term Loans

Overview

White Oak is a direct lender to middle market companies. White Oak provides businesses with term loans for growth, acquisition, buyouts, recapitalization and working capital. Our investment team specializes in customized financing solutions designed to achieve our borrowers' objectives.

White Oak primarily lends to companies based in the United States and Canada. For term loans, we target companies with enterprise values between $50 million - $2 billion and/or EBITDA levels below $50 million, competitive positions within their respective markets and industry-leading management teams. Our product suite includes first lien, split-collateral, unitranche and one-stop financings. We offer both amortizing and non-amortizing structures.

White Oak's senior debt investments range in size from $10 million to $500 million, though our hold position typically ranges from $10 million to $120 million, with maturities of five years or less. We invest in a wide variety of industries, including:
  • Manufacturing & Industrials
  • Transportation, Aerospace & Defense
  • Healthcare Equipment & Services
  • Consumer Durables, Apparel & Retail
  • Technology, Media & Telecommunication Services
  • Energy Equipment & Services
  • Energy & Natural Resources
  • White Oak International
We work with both sponsor and non-sponsor-backed businesses in various stages of their evolution including growth, maturity and restructuring.

Cash Flow

Cash-flow loans are based on the projected future cash flows of a business, with the lending limit generally set at projected future revenues and its past ability to generate cash, rather than the liquidation value of the assets. Cash-flow loans are typically used for funding growth or financing an acquisition.
Darius J. Mozaffarian
Partner & Co-President

Hard Assets and Cash Flow

Hard asset loans are collateralized by property, plant and equipment to enhance credit quality. Orderly liquidation values are assessed through appraisals, which are used to monitor closely the value of the collateral pools in auction-based environments. Repayment of a loan is generated through cash flow produced by the borrower through its general operating activities. These loans typically contain contractually determined interest along with amortization schedules.
Darius J. Mozaffarian
Partner & Co-President

Enterprise Value

Enterprise value loans are based on the total value of a company, generally determined with reference to comparables in the open market. These companies tend to be either high growth firms with a particular competitive advantage and compelling market dynamics or larger well established enterprises requiring capital for large asset purchases and working capital needs. Exit strategies focus on strategic acquisition, sale or cash flow generated by the firm to service the debt.
Darius J. Mozaffarian
Partner & Co-President

Opportunistic

Opportunistic loans are typically complex situations, short term bridge loans or bespoke liquidity circumstances that utilize White Oak's fundamental investment approach. White Oak is here to assist businesses with unique circumstances by offering customized credit solutions.
Darius J. Mozaffarian
Partner & Co-President

Debtor-in-Possession (DIP) & Restructuring Financings

Debtor-in-possession (DIP) financings are senior secured obligations to companies undergoing a restructuring under Chapter 11 of the U. S. Bankruptcy Code. These typically have priority over any existing debt, equity or other claims. When structuring DIP financings, White Oak utilizes the same fundamental strategies that it applies to its senior secured loans.
Darius J. Mozaffarian
Partner & Co-President
Asset-Based Lending & Factoring

Overview

Asset-Based Lending (ABL) is a loan, or line of credit, secured by balance-sheet assets: accounts receivables, inventory or other intangibles, such as intellectual property. ABL is also commonly known as a commercial finance loan. Factoring is an ABL financial tool that can help companies unlock working capital and simplify their credit and collections processes.

White Oak focuses its ABL and factoring lending in the following sectors:
  • Electronics
  • Fashion & Apparel
  • Food & Beverage
  • Furniture & Homegoods
  • Government Receivables
  • Health & Beauty
  • Manufacturers
  • Pet Products
  • Retailers & Wholesalers
  • Staffing & Technology

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Invoice Discounting

White Oak unlocks valuable working capital through invoice discounting. Invoice discounting allows companies to maintain control of their invoices and collections processes without having to disclose their financing facilities to their counterparties. Clients utilizing invoice discounting gain access to the cash tied up in their outstanding invoices and increase overall company liquidity and cash flow. Invoice discounting has the benefit of keeping a company's credit facility confidential since the company is responsible for collecting and repaying the cash and fees advanced by White Oak. With invoice discounting, businesses access liquidity secured by their receivables to increase financial flexibility without having to disclose the nature of their financial arrangements to their counterparties.
Thomas K. Otte
Chairman, White Oak Commercial Finance, LLC
Partner & Managing Director of White Oak Global Advisors, LLC

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Factoring

White Oak provides companies with immediate access to cash through factoring. Factoring is a financial tool that increases financial flexibility and security with a revolving line of credit secured by a company's accounts receivables. With access to White Oak's real-time customer credit decisions, clients can grow their customer base and accelerate cash flows while mitigating exposure to bad debts.

Factoring is generally provided on a non-recourse basis and provides an inexpensive outsourcing platform for customer credit analysis, accounts receivable bookkeeping and the collection of invoices. White Oak typically purchases the invoices and provides full credit protection on undisputed invoices. In other situations, White Oak provides credit protection to mitigate the risks of non-payment. Clients have a direct line to White Oak's credit department and gain 24/7 access to transactions and reporting, including the receipt of invoices, advances and customer payments.
Robert P. Grbic
President & Chief Executive Officer
White Oak Commercial Finance, LLC

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Supply Chain Finance

White Oak's supply chain finance product finances the supply chain gap, which reduces international trade risk to suppliers and increases business between foreign suppliers and U. S. importers. It provides complimentary international trade document management services and can arrange other ancillary services to importers and exporters, including inspection, cargo and marine insurance, door-to-door logistics, credit guarantee and collections.

Foreign suppliers generally receive customer credit coverage and reduced working capital requirements, while being paid 100% immediately, without recourse and upon shipment. U. S. based importers receive open account terms for periods up to 120 days from the bill of lading date, aiding in improved working capital management and payment flexibility.

The product acts as a flexible instrument to improve availability of working capital in a transparent structure that offers streamlined administrative processes.
Thomas K. Otte
Chairman, White Oak Commercial Finance, LLC
Partner & Managing Director of White Oak Global Advisors, LLC

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Inventory Financing

White Oak offers inventory financing in combination with existing collateralized factoring and/or ABL facilities to companies looking to enhance their cash flow and borrowing capacity. Inventory financing is often used to pay suppliers offering no or limited payment terms or to build inventory in advance of a heavy shipping season. With inventory financing, it is anticipated that the goods purchased will turn into financeable receivables; however, there are instances in which inventory financing can be used to support the purchase of goods that will be sold through non-traditional wholesale channels.

The use of inventory financing ensures companies have the necessary liquidity to purchase and hold the proper amount of inventory needed to supply their customers with goods. Inventory financing is a way for seasonal businesses to stay ahead of the busy season or for companies importing their goods from abroad to deliver on time to their customers. Coupled with a traditional factoring line of credit or asset-based lending, inventory financing helps ensure that a customer is supported through the entire order-to-cash cycle.
Thomas K. Otte
Chairman, White Oak Commercial Finance, LLC
Partner & Managing Director of White Oak Global Advisors, LLC

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Trade Finance

White Oak provides a variety of trade finance solutions to producers, distributors and trading companies within the commodities and global supply chain complex. The program targets short- to medium-term USD-denominated transactions that are self-liquidating and supported by the physical goods and/or receivables being financed. White Oak works with counterparties in select jurisdictions around the globe where trade finance solutions are the most prevalent.

White Oak works with banks, finance and advisory firms, trading companies, sponsors and alternative investment companies. Our financings are in the $5 million to $30 million range, typically less than one year in length and underwritten based on the underlying fundamentals of the transaction.
Michael Dean
Head of White Oak Trade & Specialty Finance

U.S. Import/Export Financing

U.S. import/export financing is a short-term credit solution to bridge the purchase and sale of inventory for companies with limited cash flow. As an alternative to traditional inventory financing, import/export financing allows businesses to fund the purchase of inventory against confirmed sales orders and helps ensure continued sales growth. Import/export financing will fund up to 100% of production costs against credit-approved customer sales including, in certain scenarios, duty, freight and labor costs needed to land the goods for shipment to the customer. This added liquidity ensures that clients are not tapping into valuable equity reserves.
Andrew H. Tananbaum
Executive Chairman
White Oak Commercial Finance, LLC

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Equipment Lending

Overview

Equipment lending provides financing against revenue-generating equipment and other physical personal property. White Oak customizes lease payments, interest rates and amortization schedules on a case-by-case basis. Underwriting focuses on the value of the equipment over the life of the transaction. Financings typically range in size from $10 million to $120 million, with maturities of one to five years. White Oak also provides vendor finance programs, such as for healthcare equipment and technology.

Equipment lending is provided for a variety of assets, including:
  • Manufacturing and processing equipment
  • Transportation equipment, including trucks, tractors and trailers
  • Aircraft
  • Medical/healthcare equipment
  • Other revenue-generating assets
White Oak provides financing solutions to middle market companies, primarily based in the United States and Canada, in a variety of industries, including aviation, manufacturing, construction, mining, healthcare, food processing and oil and gas.

Equipment Financing

White Oak offers traditional equipment financing loans, the proceeds of which the borrower uses to purchase equipment.
Darius J. Mozaffarian
Partner & Co-President

Equipment Leasing

White Oak offers equipment loans based on financing equipment which the borrower leases rather than purchases.
Darius J. Mozaffarian
Partner & Co-President

Equipment Lease Financing

White Oak offers equipment financing loans, the proceeds of which the borrower uses to make the lease payments on the equipment.
Darius J. Mozaffarian
Partner & Co-President
Credit Services

Overview

White Oak provides a variety of credit services to help small and middle market businesses scale their operations, improve efficiencies and increase profitability. The team works closely with the CFOs and Treasurers of private companies providing them with independent advice and professional services on all aspects of credit, from syndicating loans to collecting invoices.

Debt Capital Management

White Oak provides debt syndication capabilities, debt capital markets solutions and ancillary advisory services to corporate borrowers and institutional investors. White Oak has experience across a broad range of industries with demonstrated success in supporting businesses by raising capital throughout their balance sheets.
Andre A. Hakkak
Chief Executive Officer & Co-Founder.

Trade Credit Risk Management

White Oak offers customer trade receivable risk management solutions designed to protect receivables and mitigate the risks associated with extending trade credit terms. Our solutions offer customers credit risk management while facilitating access to improved credit terms and larger credit limits, which can enhance competitiveness and translate to improved profitability and growth potential.

White Oak offers risk management services to all types of businesses ranging in size from entrepreneurial businesses to pubic companies and spans a variety of industries including apparel and manufacturing, technology and electronics, furniture and home goods. Our professional accounts receivable risk managers provide the outsourcing support to lower overhead, grow sales and improve profitability.
Thomas K. Otte
Chairman, White Oak Commercial Finance, LLC
Partner & Managing Director of White Oak Global Advisors, LLC

Accounts Receivable Management

White Oak's outsourced accounts receivable management program can handle a client's accounts receivable process for maximum efficiency and transparency. Our program encompasses the broad range of accounting and administration process from credit protection and collection services to cash application, bookkeeping and reporting. Our 24/7 online systems and comprehensive reporting provide regular access to current information.
Thomas K. Otte
Chairman, White Oak Commercial Finance, LLC
Partner & Managing Director of White Oak Global Advisors, LLC

Treasury Management

White Oak's experienced treasury management team provides treasury solutions to a wide variety of businesses with the objective of enhancing their yield without compromising risk or duration. Our goal is to become an extension of each client's treasury department as consultants on treasury practices and operations, investment optimization, risk management as well as other aspects of successful cash management.

In addition to traditional cash investment solutions, White Oak builds institutional investment portfolios using FDIC-insured certificates of deposit, which are backed by the full faith and credit of the U. S. government, and may yield significantly more than Treasury securities with similar maturities. White Oak provides a comprehensive, turnkey platform, which includes risk management, accounting, compliance and performance features.
Gregory B. Stilson
Managing Director, Portfolio Manager

Credit and Collections

White Oak has a full-service credit and collections department. We enable small, medium and large-scale firms to outsource their customer credit and accounts receivable collection services. Outsourcing these functions to an industry leader can provide administrative cost savings and allow management to concentrate on running the business effectively, with assurance that the firm's customers are credit worthy and pose minimal financial risk.

Through White Oak's credit and collection services, customers are screened for credit worthiness and undergo White Oak's own underwriting and due diligence review. We also assume full credit risk on approved sales, while performing bookkeeping and collections work on our clients' behalf.

With over a decade of experience and entrepreneurial spirit, White Oak strives to provide comprehensive value-added services and the support to grow.
Thomas K. Otte
Chairman, White Oak Commercial Finance, LLC
Partner & Managing Director of White Oak Global Advisors, LLC