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What Other Working Capital Financing is Available?

Hard Asset Financing – Short – Term Financing

Hard asset financings are loans used for a short term basis, usually 6 to 12 months. Hard money lenders look for quality of the collateral, ability to re-pay, exit strategy and reasonableness of the request.

Who uses it and why?

Businesses can find themselves with an opportunity for growth or in need of quick bank re-financing. Hard asset financing focuses on greater lending availability, flexibility and speed. Hard money is used for:

  • Lender takeout’s
  • Bridge financing
  • Re-capitalization
  • Fund rapid growth
  • Other reasonable requests

If your business is need of financing and ran into brick walls with banks and other funding sources, call the experts tool free at James Capital at 855.585.7755 for assistance in meeting your cash flow needs.

Sale Leaseback

A sale/leaseback or sale and leaseback, it is a transaction wherein the owner of a property sells that property and then leases it back from the buyer. The purpose of the leaseback is to free up the original owner’s capital while allowing the owner to retain possession and use of the property. The type of property involved can be anything from equipment to real estate. It is a working capital strategy used by many types of companies in varying stages of corporate life cycles. Unlike hard asset financing, sale leasebacks terms are usually over three to seven years. Call the commercial financing experts at James Capital to see if this technique is right for you.

Mezzanine Financing

A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies.

Since mezzanine financing is usually provided to the borrower very quickly with little due diligence on the part of the lender and little or no collateral on the part of the borrower, this type of financing is aggressively priced with the lender seeking a return in the 20-30% range.

Call us toll free at (855) 585-7755 to discuss your funding options.