Alternative Financing – Nontraditional Lenders vs Bank Financing
Five Benefits of Working with Nontraditional Lenders vs. Bank Lenders
By Jeff Bardos CEO, Speritas Capital Partners
November 8, 2018 – Connecticut
Traditional bank lending options are often not available or are insufficient to support rapid business growth. I recommended that growing companies consider nontraditional financing options to fund rapid growth in a strategic way. But not every CFO knows what kind of options are available in the alternative financing space when their bank can’t help.
So what can you expect when you venture into the nontraditional lending space?
Nontraditional lenders provide a much wider range of loan options than traditional bank lenders. At Speritas Capital, we focus on 3 general areas for nontraditional lending – asset-backed finance, business acquisition and expansion loans, and commercial real estate.
(In the asset-backed space, we’re talking about accounts receivable financing, factoring, equipment and inventory financing, purchase order financing, broader asset-backed lines of credit, mobility financing, venture and mezzanine debt. Real estate options include bridge, construction and permanent financing.)
Nontraditional lenders can help in a wider range of industries. We can work with companies in nearly every industry, including manufacturing, services, exporting, even government contractors.
Nontraditional lenders can help in a wider range of company stages. We can work with companies at every stage of development and we do not have time in business minimums. That being said, we are NOT an equity shop and sometimes equity is the best and only financing option.
You can expect innovation and creativity in structuring a loan. We’re focused on sources of strength – management, collateral, current and projected earnings, personal or business credit, sponsorship. Unlike traditional lenders, nontraditional lenders don’t require strength in ALL these areas.
Alternative financing sources can help you squeeze more out of your equity. By being creative with nontraditional financing, we’re helping companies squeeze more out of their equity and extend the time between raises and potentially minimizing dilution.
I hope this helped clear things up about what to expect when working with a nontraditional lender!
Speritas Capital Partners specializes in difficult credit, collateral and cash flow situations and we never take upfront fees.
Speritas Capital – 14 Relay Place – Cos Cob, CT 06807