Financing Process

Financing Sources You Can Build Business Success

Capital Solutions represents individual business clients and works with appropriate lenders to address specific needs. Our independence allows us to consider a variety of financing sources and tools that serve your best interests now and in the future. We begin our process by reviewing your current situation, your company's immediate needs and your longer-term goals. From there, we develop and implement a custom tailored financing program that draws on reputable and stable financial entities specializing in the funding vehicles below.

Traditional Bank Debt

Banks' credit appetites expand and contract based on their capital positions, lending policies, regulatory requirements and institutional objectives. We believe traditional banks are a cost-effective financing source for businesses that meet current lending thresholds. We look most often to banks as providers of working capital lines of credit.

Leasing

Using versus than owning, equipment can be a key to generating cash flow. When used in the right situation, leasing can be a cash efficient and balance sheet friendly way to make use of an asset. That said, we have found equipment leasing to be one of the most misunderstood and misrepresented tools available to business owners and financial professionals.

Government sponsored SBA Loans - 7A and 504 products

When you are talking about SBA loans, there are two different programs - 7A and 504 Loans. Both types of loans are cash flow sensitive in their underwriting criteria; The difference is in structure and collateral which supports each loan. With a 7A Loan, any type of asset is considered in supporting the loan. Real estate, equipment, goodwill, patents and other 'soft' assets. 504 loans primarily deal with hard collateral items such as real estate and equipment. Terms vary from 10 to 25 years and there is a $5,000,000 limit available with both programs. The SBA term is the amortization term so it is one of the few loan products available where you can get a loan that matches the asset class.

Vendor Financing Programs

Vendor financing programs can be great sales tools for companies that offer finished products to end customers. When you are attempting to close a sale, your salesforce having the ability to say in real time that you can pay $100,000 or $1,933.28 a month, it creates options to keep the door open? There are all types of structures and strategies by incorporating a vendor program with the end game is getting the sale!

Asset-Based Lending/Factoring/Lines of Credit

There are numerous reasons that a company would choose to utilize an asset-based lender or a factoring arrangement. There is an increased interest cost in utilizing these type lenders but with an extensive discussion of each program, sometimes its the most cost-effective and operationally appropriate financial decision to make.

In most cases, these type lenders will only offer lines of credit secured by accounts receivable and inventory. In some cases, they may offer an interest only bridge on companies fixed assets that may be more 'cash flow' friendly versus a credit appropriate alternative? In any case, the underwriting and covenant requirements will not be as restrictive that is required in traditional bank financing.

Private Investments

We work with family offices, individuals, private equity, hedge funds, mezzanine debt lenders, and other sources of private capital to fund projects that require a capital infusion outside of traditional sources. In many cases, a combination of capital sources will be required but one of these types of institutions will be involved.