SITUATIONAL CAPITAL TERM LOANS

Learn About Our Situational Capital Loan Solutions

Situational Capital term facilities are typically subordinated debt solutions providing growth capital and special situation financing without the restrictions of a traditional bank. These are non-dilutive options for special situations that do not conform to traditional bank or asset-based lending. Our non-dilutive options are ideal for companies or sponsors seeking to preserve equity.

Loan Amounts Start at $500,000, Rates start at 10%

Structured Cash Flow

• Structure: First lien, second lien, unitranche
• Underwriting: Fixed charge >1.10, Leverage < 3x (can use proforma EBITDA)
• Point of Difference: $1-5mm check size sweet spot is tough to solve for, typically financing non-sponsor backed / family owned businesses that don’t attract other credit funds

Collateral Based - non-conforming ABL (can underwrite AR, inventory, IP, M&E and RE)

• Structure: First Lien, split lien
• Underwriting: Third party verification of collateral values subject to appropriate advance rates
• Point of Difference: Deals that don’t qualify for lower cost pricing or are in need of over-advance / more flexibility than conforming ABL

Guarantor Based

• Structure: First lien, second lien, unsecured. Wide range based on business and PFS profile.
• Underwriting: PFS assets / net worth
• Point of Difference: Guarantor does not qualify for private banking and/or requires speed to clos

Recurring Revenue – primarily SaaS businesses

• Structure: First lien, second lien
• Underwriting: Recurring revenue metrics, EV, and RML
• Point of Difference: Non-dilutive, ability to be second lien, don’t require institutional VC, can scale loan size with company growth

Special Situations – opportunistic note purchases from banks/credit funds

• These deals typically fit into one of the buckets above

START YOUR ONLINE APPLICATION NOW OR CALL +1 (561) 948-0769