Debt Financing In 2018:
Here Are Your Options
Here Are Your Options
These are the two options for a growing company seeking commercial credit in 2018.
While traditional bank financing can be great, emerging growth companies typically cannot obtain traditional bank financing. When a bank reviews a company with high growth, the bank sees risk, but fails to see opportunity. Banks prefer stability to growth, and, as a result, dynamic companies are provided inadequate financing alternatives or no financing at all. In the rare case when traditional bank financing has been made available, it is often insufficient in amount and includes substantial covenant protections, including stringent earnings to fixed charges and financial coverage ratios, and many others.
Alternative lenders are quite different than traditional banks. Alternative lenders are often family offices or funds that have set aside capital to lend to growing companies. Contrary to traditional banks, alternative lenders enjoy working with high growth companies. They provide flexible financing solutions through ABL, purchase order, invoice, inventory, equipment, term loan, and other forms of credit, as well as merger and acquisition finance. Additionally, as they are typically unregulated, they act substantially more quickly and are more nimble with respect to business developments.
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 credit financing, we would love to discuss how we can help you secure the best possible financing for your needs. As New World 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.
We would love to discuss further whether we can be helpful to your company. Please contact us using the form below so we can have a discussion about your company’s needs.
New World Merchant Partners LLC is a transaction and strategic advisory and merchant banking firm with offices in Boca Raton, Florida and Newport, Rhode Island. We are a team of seasoned professionals with long and successful track records as a result of their experience in finance, investment banking, law, marketing, technology and operations.
New World and its principals have advised and assisted more than 200 management teams and owners to help them achieve their business objectives through the design of innovative transaction structures and the execution of numerous corporate finance, M&A, credit, and commercial transactions totaling in excess of $15 billion.
Our partners have led more than 250 public transactions and hundreds of private transactions and financings.