About the Transaction:

Greenfield Commercial Credit, an asset based lending business based in Bloomfield Hills, MI was started in 1995 to provide financing to companies that were rapidly growing, in transition or restructuring operations. The recession of 2008/2009 forced Greenfield management to reexamine its internal loan generation and monitoring processes to secure financing for growth in 2010 and beyond.

Key Value Creation Metrics:

• A loan committee consisting of top level Greenfield Commercial Credit and Greenfield Partners’ managers was put into place with a focus on improving credit quality. This change led to a dramatic decrease in the number of loans liquidated per year and more consistent earnings.
• A partnership was developed with Greenfield Partners portfolio company Veritas Global LLC, a corporate investigative services firm (now Rehmann Corporate Investigative Services), to provide detailed background information on the principals of potential Greenfield Commercial Credit borrowers. The partnership further assisted Greenfield Credit in improving credit quality within the portfolio.
• A proprietary loan management and filing system was developed allowing Greenfield Portfolio managers and top level management to better monitor the daily loan activity, collections, and assets of Greenfield clients.
• Several computer-based processes were developed that reduced the amount of manual interface with the company’s loan systems. These processes have significantly cut the amount of time and improved the accuracy and reliability of data in the loan and financial systems. This allows the portfolio managers more time to effectively manage their customer base.
• A group of college educated business graduates were hired as Portfolio managers to monitor Greenfield’s client companies. Previously these positions had been considered bookkeeping roles and issues were forwarded as they arose to top level management. This change allowed Greenfield to reduce staff at various levels and streamline its loan management process.
• The Greenfield sales staff was restructured with a renewed focus on Texas andthe southeast United States. This change promoted growth in geographic regions that had been previously untapped by the company.