A small business had a "hiccup" within the last three years, but has already recovered and is now on a clear growth path. They need additional capital to continue to grow and yet their bank is not in a position to lend more.
Solution: Vested for Growth can provide subordinated debt that would be priced more than bank debt but is no different in structure other than it is subordinate to the bank.
A small business is introducing a new product line and requires more working capital. The business has committed all of its collateral to its senior lender and has maxed out what they can get from their bank. The company is not interested in offering investors any equity but understands the need for risk tolerant capital.
Solution: Vested for Growth debt at 8-10% interest rate for 10 years with a royalty payment of 1/4 to 3% of revenue. Depending upon the level of risk (uniqueness and value of new product, management expertise, security interest) the size of the royalty and when it kicks in and when it stops is all negotiated.
A founding partner of a small business is ready to retire but wants the business and its remaining employees to prosper into the future. Equity is needed to buy-out the founding partner.
Solution: Vested for Growth equity structured to build a lasting company that allows employees to participate in the growth of the company.
A group of employees learn that
their plant is closing or that the parent corporation wants to
offload their portion of the business. Their response is to test the
feasibility of joining together to purchase the business. After
pooling their equity and maximizing their primary financing sources,
they fall short of the equity needed.
Solution: Vested for Growth equity
structured to build a lasting company that allows employees to
participate in the growth of the
company.
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