Our clients are middle-market businesses seeking debt solutions not available through traditional commercial banking sources.
They generally have revenue ranging from $5 million to $250 million and are located across the US, Canada, and Mexico.
They are active in specialty vehicle production, automotive part manufacturing, defense and aerospace, other specialty manufacturing, specialty consumer finance, construction, restaurant and food manufacturing, branded apparel, software and systems development, and data management and analytics.
- Most have growth opportunities and related credit needs that surpass the bank’s willingness to lend and wish to fund these needs without equity dilution.
- A portion of our clients are in the midst of a turnaround. They have some level of blemishes on their credit profiles due to past operational, financial, or legal challenges. In many cases, these blemishes can be adequately explained and overcome if the lender is willing and able to invest the time to listen to the story, analyze and understand the story, and act on the story. However, in today’s environment, there is little chance a banker will listen to your story, let alone act on it.
- Some clients seek structural enhancements that their bank is unwilling to provide, such as:
- not requiring a personal guarantee,
- greater borrowing base availability on their investment in inventory, or
- providing availability on long-dated, foreign, or concentrated receivables that the bank does not include in its borrowing base calculation.
- Businesses seeking funds to support their existing or expanded real estate facilities.
- Manufacturing clients that are expanding their presence in Mexico and wish to finance a component of their investment in new equipment.
- Additionally, those with capital tied up in equipment within the Mexican operations wish to redeploy that capital in other investments through a sale and leaseback.
- Organizations with real estate investments wish to redeploy that capital into higher-returning growth initiatives through a sale and leaseback strategy (SLB).
- Clients are also utilizing the SLB strategy to reduce the equity contribution when purchasing a business that includes real estate.
- SaaS clients with a contractual recurring revenue component to their business model and seek funding for growth initiatives based on the future cashflow stream. They generally have Annual Recurring Revenue (ARR) greater than $1 million.
- Some enterprises are active in industries or sectors considered undesirable within the banking world due to regulatory, ESG, or credit policy restrictions. These include cannabis, firearms and ammo, construction contracting, oil and gas, mining, etc.
If your business fits one of these areas, contact me at [email protected] to review it and explore the available funding alternatives.