Unlocking the Benefits of Subordinated Debt Financing

Introduction:

In today's competitive business landscape, access to capital is crucial for businesses to thrive and grow. One financing option that offers unique benefits is subordinated debt. This type of financing, offered by Marksmen Capital and other lenders, provides businesses with the flexibility and support they need to achieve their financial goals. In this blog, we will explore the advantages of subordinated debt financing and how it can benefit businesses in various ways.

1. High Funding Amount:

Subordinated debt financing allows businesses to access a maximum funding amount of $10 million. This substantial funding can be utilized for various purposes, such as expanding operations, purchasing new equipment, or investing in research and development. With such a significant funding capacity, businesses can seize growth opportunities and fuel their expansion plans effectively.

2. Flexible Terms:

With subordinated debt financing, businesses can enjoy flexible loan terms ranging from 1 to 2 years. This flexibility ensures that businesses can align their repayment schedules with their cash flow projections and financial objectives. By tailoring the loan terms to their specific needs, businesses can effectively manage their finances and optimize their operations.

3. Approval Based on Cash Flow:

Unlike traditional loans that heavily rely on collateral, subordinated debt financing primarily considers the cash flow of the business. Lenders evaluate the business's ability to generate consistent revenue and meet repayment obligations. This approach allows businesses with strong cash flow but limited collateral to access the financing they need.

4. Competitive Interest Rates:

Subordinated debt financing offers competitive interest rates, starting at 15% Up to 24 Month Terms. This competitive pricing ensures that businesses can access funds at a reasonable cost, minimizing their overall financial burden. Additionally, with a diverse lending network of over 75+ lenders, businesses can compare and choose the most favorable interest rates, further optimizing their financing terms.

5. Subordinate 2nd Lien Position:

In subordinated debt financing, the lender assumes a subordinate 2nd lien position behind the senior lender. This means that in the event of default or liquidation, the senior lender will be repaid first, and the subordinated debt will be repaid afterward. This structure provides additional security for the senior lender and allows businesses to access financing without jeopardizing their existing relationships with senior lenders.

6. No Collateral Coverage, Equity, Warrants, or Covenants:

Another significant advantage of subordinated debt financing is the absence of collateral coverage, equity requirements, warrants, or covenants. This simplifies the financing process and eliminates the need for businesses to pledge assets or give up ownership stakes. This flexibility allows businesses to retain control and focus on growth without unnecessary restrictions.

Qualifications:

To be eligible for subordinated debt financing, businesses need to meet the following qualifications:

- Minimum of 1 year in business

- FICO score of 600 or above

- Minimum annual sales of $1 million

Conclusion:

Subordinated debt financing offers a range of unique benefits for businesses seeking financing. With its high funding amount, flexible terms, approval based on cash flow, competitive interest rates, and absence of collateral requirements, subordinated debt financing provides businesses with the support they need to achieve their financial goals. By collaborating with Marksmen Capital and their extensive network of lenders, businesses can explore tailored strategies to secure up to $10 million in financing. Contact Marksmen Capital today to unlock the potential of subordinated debt financing for your business.

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