Commercial Credit
What Alternative Lenders Are Offering
We have been fortunate to meet and develop extensive relationships with a large number of the alternative lenders in the United States. If your company is looking for commercial credit financing, we would love to discuss how we can help you secure the best possible financing for your needs. Alternative Lenders tend to be more flexible with regard to structure, rates, and terms than traditional bank debt financing.
As ClearThink Capital is generally compensated solely by our client companies and generally does not accept referral fees or commissions from lenders, we, unlike our competitors, are highly incentivized to provide access to credit financing on superior terms with limited or no covenant coverage.
Term Loans
Term Loans are typically secured loans with a fixed interest rate. Generally, Term Loans are paid back over a set period of time. Term Loans can range anywhere from a few months to as long as 10 years depending on a company’s situation.
Cash Flow Loans
Cash Flow Loans are term loans based on a company’s revenue and gross profit. The lender uses the company’s cash flow as collateral for the loan.
M&A Financing
Some Alternative Lenders are very receptive when it comes to M&A Financing. The structures for M&A Financing can vary drastically depending on the situation. Some lenders will request an equity position as well, while some prefer to lend on a purely debt basis.
Deciding between equity and debt capital? Check out our post: Debt or Equity Capital? Deciding Which Is Best For Your Business
Factoring
Factoring loans are done as credit lines, as opposed to term loans. With a Factoring loan, the lender purchases a company’s receivables at a discount, resulting in more rapid working capital.
Accounts Receivable Financing
Accounts Receivable Financing is a loan utilizing your eligible accounts receivable as collateral.
Mezzanine
Mezzanine debt involves a junior term loan. As a result, the interest rates tend to be higher, but depending on a company’s situation, a junior loan might better fit their needs.
