Capital Formation

Capital Formation

Stressed businesses are always looking for capital as part of their turn around effort. In order to restore profitability, it often takes financing in order to increase inventory, hire more people, purchase equipment so that you can grow revenue and become competitive again. We have established relationships with lenders that can provide you with much needed capital which combined with a turnaround and debt workout strategy, could make your business tremendously successful. Below are some types of financing we may be able to arrange for your company:

Bridge Loan – Typically at high interest rates, these short-term loans can save your business while going through a slow cash flow period while you work to secure more permanent long-term financing. A bridge loan is usually secured by some form of collateral such as real estate or inventory and requires aggressive repayment terms. Bridge loans are typically used only when you have no other options, but this financing is a better alternative to closing your business.

Asset Based Loan – If you own inventory, equipment, and/or real estate, you can use the equity in these assets to help your business grow. The lender takes a security interest in your assets in exchange for cash out. Typically the terms can be reasonable if you have enough equity in your assets to make the lender feel secure. It could be exactly what your business needs to grow sales, refinance debt or upgrade machinery.

Accounts Receivable Factoring – If you need some short-term financing, factoring allows you to sell your receivables for immediate cash so that you do not have to wait to be paid by your customer. This is a good solution for businesses that have large credit worthy customers, who are slow to pay. This type of financing is typically based on the credit worthiness of your customer, not the business seeking the financing, so you may qualify even if your business is under a lot of stress.

Purchase Order Funding – Many small businesses land the big order from a customer, but they have no way of fulfilling it due to a cash shortage. You may need some short-term financing to pay for inventory and labor while you build that large order, so you can gain a new client and expand your business. Again, this type of financing might be good for your business, as often it is based on the credit of your customer and not your company.

Revenue Based Financing – This type of financing is not truly a loan, instead you are selling your future receivables in exchange for a cash investment in your company. These lenders usually will inject money very quickly and with very little documentation. If your business receives credit card payments, you may be able to borrow money even faster based on the sale of future credit card receipts. The interest rates are usually high, the repayment terms are aggressive, but if you need immediate cash on a short-term basis, this might be your best option.

If you need quick cash for payroll, this is your best option and you can sometimes receive funds in as little as 48 hours.

If you would like to explore your options, you can submit an application online now to see if you qualify.