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Jeffrey Sweeney is an investment banker with years of experience in direct lending and corporate finance for small- to middle-market companies. He is the CEO and Managing Director of US Capital Partners, an innovator in small- to middle-market business lending. US Capital Partners has been providing prompt, innovative, and reliable financing solutions across the United States and abroad for more than a decade.

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Tuesday
Feb242015

US Capital Partners to Secure an Investment Facility for Wham-O

Private investment bank backs world-renowned American toy manufacturer and marketer, to support the accelerated growth of its recently launched lineup of new consumer brands.

SAN FRANCISCO, FEBRUARY – US Capital Partners Inc. has been engaged by Wham-O Marketing, Inc. (“Wham-O”), a global leader in the toy and lifestyle industries, to raise an investment facility to support strategic growth initiatives. Headquartered in Los Angeles, California, Wham-O manufactures and markets some of the most recognizable consumer brands in the world today, including Slip ’N Slide®, Hula Hoop®, Frisbee®, and Hacky Sack®.

Headquartered in San Francisco, US Capital Partners is a full-service private investment bank that makes direct debt investments between $500,000 and $30 million, participates in debt facilities, and underwrites debt and equity private placements. The firm has a proven track record in securing well-structured financing for middle market companies across a wide range of industries, and a history of successful closings in the consumer discretionary sector.

“Wham-O is currently at an inflection point in its international expansion, having just launched a range of additional exciting new products and brands,” said Kyle Aguilar, CEO at Wham-O. “We are delighted to be collaborating with US Capital Partners and its experienced team of investment bankers. Our continued success and entrepreneurial spirit depend upon building smart partnerships, and US Capital Partners represents just the committed financing partner we are looking for as we move into the next phase of strategic growth.”

“We are pleased to be arranging financing for this leading American toy manufacturing and marketing firm,” said Jeffrey Sweeney, Chairman and CEO at US Capital Partners. “Wham-O and US Capital Partners are both headquartered in the San Francisco Bay Area. As many US manufacturers have been continuing to shift their operations overseas, we recognized an opportunity to partner with an established company that has a history and track record of worldwide success, but that is still striving to maintain its California footprint. We are extremely pleased to be supporting Wham-O’s continued success.”

About Wham-O

With over 65 years of cultural and commercial significance, and with a lineup of consumer products that appeal to people of all ages, the Wham-O® brand remains synonymous with fun, play, and sport. Wham-O manufactures and markets some of the most recognizable consumer brands in the world today, from classics like Frisbee® discs, Slip ’N Slide® water slides, and Hula Hoop® toy hoops, to outdoor brands like Morey®, Boogie® body boards, Snow Boogie® sleds, and BZ® Pro Boards.

Wham-O is a company and lifestyle brand that is steeped in the American cultural tradition of classic, well-made products. Wham-O continues its success and entrepreneurial spirit by building smart alliances with inventors that are aligned with Wham-O’s mission of bringing new products to market that promote our ongoing commitment to the highest quality, and to bringing families, friends, and teammates together during every season of the year – indoors and out.

About US Capital Partners Inc.

Since 1998, US Capital Partners (www.uscapitalpartners.net) has been providing well-structured, custom financing solutions to private and public companies in the United States and abroad. Headquartered in San Francisco, US Capital Partners is a full-service private investment bank that makes direct debt investments between $500,000 and $30 million, participates in debt facilities, and underwrites debt and equity private placements. The firm also offers financial advisory services for buy-side and sell-side engagements and for capital formation, including early-stage financings requiring equity or debt.

To learn more about how your business can secure the funding it needs, email Jeffrey Sweeney, Chairman and CEO, at jeff@uscapitalpartners-marketing.com or call (415) 889-1010.

Tuesday
Feb172015

Securing Growth Capital for Your Small or Medium-Sized Business in 2015

Many business owners are readying themselves for a year of significant growth. Find out how to secure the expansive financing you need to implement your growth plans this year.

Business Owners Anticipate Growth in 2015

CEOs are feeling increasingly optimistic about the outlook of their businesses. According to the 2015 Pepperdine Private Capital Markets Report, 67% of privatelyheld businesses surveyed believe growth opportunities will increase over the next 12 months, with more than half (57%) planning to hire additional workers. For many small and medium-sized businesses (SMBs), however, securing sufficient capital to support growth remains an ongoing challenge.

Sourcing Growth Capital for Your Company

Nearly 89% of business owners report having the enthusiasm to execute growth strategies, yet just 52% report having the necessary financial resources to successfully execute growth strategies.

Many loan applicants seeking additional working capital or growth capital are thriving enterprises that for one reason or other fall outside the standard parameters for traditional bank financing. Often, they approach the wrong type of lender or fail to present their application in the best way from a lender’s perspective. Some SMBs choose not to raise financing simply because they believe they will be rejected, because of a lack of expertise, or because of a shortage of time.

How US Capital Partners Can Help

US Capital Partners Inc. is at the cutting-edge of SMB financing. The firm has a proven and well-developed capability for providing growth capital for smaller enterprises. The firm offers both debt financing and equity financing, always intelligently structured to meet the particular needs of its clients.

Last quarter, for instance, US Capital Partners provided $3.25 million in growth capital to Capriati Construction Corp., a leading general contractor in the construction industry, to fund the expansion of its services to additional Midwestern and Western States. US Capital Partners also provided a scalable $1 million facility backed by the U.S. Small Business Administration for an expanding Florida-based Jersey Mike’s Subs franchisee, and a $1.5 million term loan to World of Beer, to support the ongoing growth of its chain of beer taverns.

US Capital Partners examines transactions on a case-by-case basis. Its financing technicians have years of experience, allowing them to structure custom finance solutions for SMBs quickly and efficiently. 

Tuesday
Feb032015

US Capital Partners Provides Term Loan for Braj Bhumi Group

Private investment bank backs California-based nonprofit organization by structuring and securing custom debt financing for the purchase of real estate near Sequoia National Park.

SAN FRANCISCO, February 2015 – US Capital Partners Inc. has provided a term loan for Braj Bhumi Group Inc. (“Braj Bhumi”), a registered California nonprofit. US Capital Partners is a private investment bank that makes direct debt investments, participates in debt facilities, and arranges equity placements for small to lower middle market companies.

“We approached US Capital Partners for financing for the acquisition of a property in Badger, California for a sustainable farming, artistic, and yoga community based on traditional ‘celestial thinking’ and deep values-based living,” said Jorge Cuadros, Director and Secretary of Braj Bhumi. “US Capital Partners has a long history of backing small businesses and nonprofit organizations in the community through its financial expertise and best-in-class business lending solutions. We are delighted with this well-structured financing.”

“We are extremely pleased to have provided a term loan for Braj Bhumi,” said Jeffrey Sweeney, CEO and Managing Director at US Capital Partners. “This transaction was more complex than usual because of the involvement of several separate organizations with tax exempt status, coupled with the absence of a personal guarantee. Despite these hurdles, US Capital Partners was able to successfully structure and provide this much-needed financing for the project.”

US Capital Partners’ expanding Philanthropic Solutions group delivers expertise and a comprehensive suite of financing and advisory services to help institutions build and sustain their nonprofit missions.

About Braj Bhumi Group Inc.

A registered California nonprofit, Braj Bhumi is a network of experienced professionals who provide a full range of pro bono financial, management, and strategic services for local and international nonprofits. Braj Bhumi supports a variety of good causes and services for the community, including sustainable farming projects, yoga communities, artistic and cultural events, and the distribution of free food, clothing, and medicine.

About US Capital Partners Inc.

Since 1998, US Capital Partners (www.uscapitalpartners.net) has been providing prompt, innovative, and reliable financing solutions including lending, equity financing, and debt re-structuring to businesses across the United States and abroad. US Capital Partners is a private investment bank, direct lender, co-lender, and lead financial arranger that specializes in asset-based debt for small to middle market private and public companies. The company’s innovative approach allows it to provide the best financing available, not only for companies in excellent financial condition, but also for companies that may have been refused credit by traditional lenders.

To learn more about how your business can secure the funding it needs, email Jeffrey Sweeney, CEO and Managing Director, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

Tuesday
Jan202015

Well-Structured, Custom Financial Solutions for Small and Medium-Sized Businesses (PART III OF III)

Ten ways US Capital Partners overcomes common financing challenges for its clients and engineers prompt, innovative, and reliable finance solutions outside the “bankable box.”

Part III, the last of this series, explores four additional special situations in which US Capital Partners is able to provide innovative, market-leading financing solutions for smaller businesses.

7. Constraints from an Existing Financing Structure

Small and lower middle market businesses sometimes find themselves restricted by stringent loan covenants or the ill-conceived terms of an early venture capital tranche. Last year, a diversified business holding company needed additional debt financing. However, the holding company’s operating subsidiaries already had maximum leverage, and any additional leverage in those businesses would trip existing loan covenants. Using the holding company’s stock as collateral for added leverage, US Capital Partners was able to provide $10 million in further term loan financing for the holding company, while the company’s existing operating subsidiaries remained fully in compliance with their respective loan terms.

8. Absence of a Personal Guarantee

Many traditional banks are unable to provide a small-business loan without the support of a personal guarantee. Last quarter, 39% of smaller private businesses with financing from an outside source reported having business loans that required a personal guarantee. By contrast, US Capital Partners regularly designs and provides debt facilities for smaller businesses that do not require any personal guarantees.

9. Distress/Workout Situations

Following weak harvest years, a California-based international produce supplier suffered a dip in earnings and cash flow. This coincided with the company’s bank becoming severely weakened during the economic downturn. Faced with liquidity issues, the bank was no longer able to provide the seasonal “over-advance” it had made available for the past ten years. Now unable to pay its vendors, the company was under serious financial pressure, which triggered a bank workout. US Capital Partners quickly engineered a workout plan for the company, negotiated a successful exit from the bank, and helped the company secure $7 million in additional financing.

10. When Time Is of the Essence

If a business finds itself short of working capital, is pursuing an acquisition, or is in distress or workout, it will usually need financing without any delay. US Capital Partners understands the need to close quickly, and has an expedited transaction process. Recently, for example, US Capital Partners provided a $500,000 bridge loan for Chellino Crane, Inc., an Illinois-based crane rental and operating business, in less than five days. The bridge financing allowed the business to purchase additional equipment promptly, to execute on new contracts.

US Capital Partners looks at every aspect of a business to provide well-structured, custom financial solutions for its clients. Often, it is able to increase availability through the discovery of credit enhancers and ways to mitigate credit risks. The firm’s non-formulaic approach and in-depth analysis allow it to provide the best financing available, not only for companies in excellent financial condition, but also for businesses that may have been refused credit by traditional lenders.

Tuesday
Jan132015

Well-Structured, Custom Financial Solutions for Small and Medium-Sized Businesses (PART II OF III)

Ten ways US Capital Partners overcomes common financing challenges for its clients and engineers prompt, innovative, and reliable finance solutions outside the “bankable box.”

As illustrated last week, US Capital Partners structures and provides custom, market-leading financing solutions for the following common special situations: (1) complex company structures, (2) businesses outside the United States, and (3) concentration risk and foreign customer risk.

Part II explores three further special situations that render business financing challenging for most traditional lenders, by increasing risk and complexity. Examining transactions on a case-by-case basis, US Capital Partners offers intelligently structured, custom financial solutions for smaller businesses, especially in these situations.

4. Ratio of Inventory to Accounts Receivable “Upside Down”

With sales ready to escalate following TV celebrity endorsements, a developer of personal massagers required additional working capital to support its inventory needs. The challenge was that the company’s ratio of inventory to accounts receivable was “upside down.” Companies with significantly higher inventory than accounts receivable are generally declined by traditional lenders. In this case, US Capital Partners provided an accounts receivable line of credit scalable to $5 million for the firm, together with a $1 million inventory line of credit.

5. Specialized Enterprises and Criticized Industries

AdJuggler, Inc., a software-as-a-service company, required flexible and scalable financing to support its ongoing growth. Many traditional bank lenders lack the expertise and experience to fund certain specialized enterprises, such as online advertising and software-as-a-service companies. They are therefore able to offer only limited financing flexibility. However, US Capital Partners was able to provide a flexible $1.25 million credit facility for this enterprise.

US Capital Partners regularly provides best-in-class funding even for businesses in industries that are generally difficult to finance. For instance, US Capital Partners provided $2.8 million in refinancing for SpecPrint, a family-run custom printing business. SpecPrint’s lender was looking to exit because the business had suffered declining sales and was operating in a criticized industry, printing.

6. Pre-Revenue Business; Lack of Historical Performance

Electronic Polymers Newco, Inc. had pioneered a new technology at a lower cost and footprint than competing products. The time had come for the company to move from an R&D facility to a manufacturing facility, and it approached US Capital Partners for assistance. Although Electronic Polymers Newco was a pre-revenue business and lacked cash-flow and debt service, US Capital Partners was able to provide a $700,000 machinery and equipment term loan to support the next stage of the company’s growth.

Many businesses are in their early stages, and may not have many years of historical performance. Traditional banks may therefore be hesitant to lend to them. However, US Capital Partners offers cash-flow term loans and other financing options to such businesses, even if they have less than $5 million in trailing EBITDA—which used to be the threshold for such loans.

Continued next week…