Commercial real estate
Companies and capital management firms investing in CRE are struggling due to the decline in demand for space and the plunge in property values, especially in urban and suburban areas due to COVID-19. Many investors and small banks are upside down on their investments and unable to meet their debt obligations with creditors. Valcor works with banks, lenders, and management firms to resolve the problems before bankruptcy and litigation make the matters worse. In many cases, Valcor has enabled both the reduction on principal and the buyout of the original note with a new lender who can provide better terms.
Local and regional small retailers
Even before the pandemic, many smaller chains were already under pressure from big-box price competition and now, facing weak demand from consumers who are struggling, many businesses are watching their margins shrink. In addition, changing technologies have caused consumers to learn new buying habits, such as internet purchasing. A sampling of our clients: Chains and independent pharmacies, stationery/office supplies, furniture, appliances, bookstores, print/copy, automotive dealers/parts, computer/software, video and music, grocers/markets, etc.
Manufacturing
When a large company moves its workforce and factories to other countries where there may be less regulation and lower costs, local small suppliers, vendors, and factories stand to lose the most: their biggest customer. Communities have been decimated by overseas job movement, and surviving companies need help. In addition, as technology advances, capital-intensive mature industries become obsolete. Yet these businesses can still survive with shifts in strategy and the working capital they need to execute changes.
Farms & Ranches
Ranchers and family farms are experiencing structural changes to their way of life and the generational family farm is threatened. As the industry is being controlled by fewer corporate entities, cash-flow issues often cause small farms to face potential bankruptcy. Valcor has been instrumental in working out solutions with banks and creditors while bringing in much-needed capital to restructure debts, purchase equipment, and provide much-needed breathing room.
Service Industries
Hospitals, hotels, food-service, entertainment, and tourism are especially sensitive during economic downturns that squeeze already-tight profit margins. Right now and for the foreseeable future, these categories of business are just trying to survive. Unfortunately, many won’t make it, but for those that can be saved, Valcor works to mediate with the clients’ multiple creditors while managing the client’s capital needs.
Startups and companies seeking growth
Early-stage and established companies who are seeking working capital to invest in product development, establish their supply chain, marketing, operations, and financing growth. Valcor assists with multiple types of lending and consultants can even participate in equity deals.