Structuring Alternative Loans to Supplement the Bank
Structured Can Help Bank Lenders Do Transactions
SMEs have been caught in a new credit crunch because of the pandemic. Risk tolerance, credit limits and covenants have tightened. In many instances it is more difficult for companies to obtain credit, or credit increases from their Bank.
Structured Business Financing works with Banks to provide complimentary debt financing solutions for small and mid-sized businesses that can fill the gap or “top up” their existing bank facilities. Instead of replacing the senior lender, our specialty is to structure loans that can be subordinated to the bank’s securitization priority.
Examples of how Structured can help Banks help their customers…..
- “stretch” financing solutions working cooperatively with the bank to bridge companies on a temporary basis until bank financing can be increased or on a longer-term basis if needed.
- additional advance rates on select assets by taking security priority over narrowly defined or specific assets that are “carved out” of the bank’s security via a waiver of security or acceptable security sharing arrangement.
- supportive venture debt and/or equity funding to shore up debt to equity lending criteria. This helps banks to fund their customer’s business transactions and retain their relationships
- Lowering the overall cost of debt. By using targeted credit methodologies, a differing risk tolerance and by automating parts or much of the decision-making process, commercial alternative lending has been able to bring down the cost of underwriting. This offsets higher funding costs and higher bad debts expectations and has also helped to provide more (and lower) pricing options.
Contact us to help you solve problems or address opportunities….
Structured Business Financing can help the Bank and its customers with complementary financing solutions for: working capital, receivables and inventory, factoring and purchase orders, equipment, real estate, growth financing, acquisitions, management succession financing, debt restructuring and refinancing.
Contact us to discuss to start a discussion on how we can support you.