Taylor got us a suite at the Hay-Adams Hotel, very nice and swanky in an old school sort of way. We drove down on a Tuesday morning, and met the Bahamian Ambassador and a State Department flunky Tuesday afternoon. There were some kind words said, a few photographs taken, and then we left with our plaque. Afterwards, I took Marilyn to dinner and chased her around the bedroom afterwards. Wednesday, we slept late and then came home to rescue our friends from our son.
Then it was back to work for me. It turned out that by the time the papers were drawn up, reviewed by everybody, reviewed by a Wall Street lawyer, and people coughed up the cash, it would be at least three months, and this was considered moving swiftly. In the meantime, we would keep going the way we had been. Meanwhile, the Buckman Group's first client/investment called me.
It was Tusker. He and Tessa asked me to come over to their shop about a month after I had seen their new location. Only it wasn't theirs yet. They were still at their old site, and were looking rather grim.
After the usual greetings, I asked, "So, what's up? How's the move going? Did you ever figure out some better financing?"
Tusker looked like he was sucking a lemon, and Tessa answered dejectedly, "I don't think it can happen."
"What! Why not?"
"We can't get any financing! Even the commercial banks won't loan to us!"
That surprised me. "Okay, truth time. Are you missing payments? Have they said your business isn't big enough to handle the payments? They must have a reason."
Tusker loudly protested, "Hey, we make all the payments on time! We always have!"
I just waved him down. "Hey, great, but it's a question that has to be asked. So it's not your credit rating then?" Both of them shook their heads. "So what is it? You can't make the payments on a new loan?"
"No, that works out, too. It's us; we have no assets other than the business. Everyone wants loan guarantees or for us to sign our house off as a guarantee. We don't have a house! We wanted to invest in the business first.", cried Tessa.
I rubbed my face for a second. I had run across this before, way back when. Typical banker behavior. My friends were doing everything they were supposed to, but it still wasn't enough.
"Well, nothing new, I suppose. There's an old statement about bankers - the only time they'll be happy to lend you the money is when you have enough money not to need it. Which bank had the best deal?"
"Maryland National."
I nodded. Maryland National was a decent sized business bank; they would grow to become much larger, but for Tusker and Tessa, it was a good bet. "Give me a few days to sort this out. Give me a copy of their latest proposal, and tell Andrea not to let it slip away. I'll have some answers in a day or two."
Tusker still looked unhappy, but Tessa began to look hopeful. I took the paperwork home and called Jake Senior. He wasn't in, but his secretary took a message. Jake called me back about half an hour later. The call arrived while Marilyn was napping in her chair, and I was on the floor chasing Charlie around as he crawled across the living room. This was a new thing he had just learned, and he thought locomotion was just the cat's ass!
When the phone rang, Marilyn snorted and looked around. I stood up and said, "It's your turn to chase him around. He's faster than me."
"What makes you so special? He's faster than me, too!"
I laughed at that and picked up the phone. "Buckman Child Experiment Laboratory. Do you have a child you'd like us to experiment with?"
Jake laughed on the other end of the line. "Too late, he's already a lost cause. You called?"
There was a crash from the other end of the room, where Charlie managed to get into something. His mother hopped up to set it right, and I sat down to talk to Jake. "Yeah, I've got some business for the Buckman Group. I've got a friend that I've been helping over the years, just giving him some advice on building a business and all, no money or anything. Anyway, he needs to expand his business, and the banks are giving him some grief. I need to figure out how to help him. Can I come over to see you?"
"Today's shot, but how about tomorrow morning?"
"Sure, 9:30?", I asked.
"Make it 10:30. You have any paperwork on him?", Jake asked.
"I'll bring what I have. I'll see you then." I hung up. I didn't know how, yet, but I knew we could sort this out. I turned around to smile at Marilyn. She was busy chasing Charlie down again, as he headed towards the coffee table. Fun times were starting!
The next morning I met with Jake at his office and went over Tusk Cycle's operation and current problems. He agreed with me that Maryland National would be a much better fit than Clifton Trust. He also understood when I said that Maryland National wanted them to tie their non-existent home in with the loan. "My problem is that these guys are doing everything we say they should be doing to get ahead. They're saving, investing in a business, they've both been to college. They are living in a crappy little apartment and putting all their money into the business, with a three year old living on a cot in the dining room. There has to be a way to help them."
"How important is this to you?"
"Pretty important. They are some of my oldest friends. We go back to high school together. He was one of my groomsmen and she damn near gave birth at the reception!"
That earned a grin from Jake. "That must have been fun!"
"Like you have no idea!", I laughed.
"Okay, here's what I see is happening. The bank is looking for collateral, in case these two go belly up." I nodded, and he continued, "For instance, if they get a dealership, the factory probably has the title to the bikes, or the bank that does the floorplan, which might be through the factory anyway. You understand floorplanning?"
Oh, Lord, yes, I understood it. Trailers have it, too. I nodded. "Marilyn's family sells trailers. Same deal there."
"So what happens if they default? The bank is stuck with an old commercial building and a bunch of rebuilt used bikes. Since your friends have no equity in the deal, they don't have any skin in the game."
"Any ideas?", I asked.
He grinned at me. "This is where we can do some things as the Buckman Group. For instance, any work I or the others do is absorbed as our cost. Currently, they are billable hours to you."
"I had figured that part out already.", I said drily.
"Would it be okay to call them, ask them a few questions? I've got a few ideas in mind."
I shrugged. "Fine by me. Let me use your phone and I'll call them, let them know what's happening." I reached across his desk and picked up the phone, and Jake pushed a 9 to get an outside line. I made a quick call to Tessa and simply told her that a fellow named Jake Eisenstein was going to call them later, and that he was my accountant and had a few questions for them. Then I left him with their paperwork from Maryland National, and told him to use my name if he needed to call the bank directly.
The following week, I got a call from Jake. "You still want to help your friends?"
"Sure thing."
"Okay, be at my office next Wednesday at 1:00. I'll let them know to give a check to Andrea in the meantime. I've got John doing due diligence now on them."