Securing Intelligently Structured Refinancing for Your Business

What drives smaller businesses to seek refinancing, and why US Capital Partners is able to provide optimal refinancing for your business quickly and efficiently. 

According to a recent study, the single biggest reason businesses sought financing in the past twelve months was to refinance existing loans or equity.

Some Reasons for Refinancing

What prompts smaller businesses to refinance existing loans? Here are a few common reasons:

1. The bank decides unilaterally to reduce availability or call in a business loan early, even if the business is doing quite well—often in an effort to shrink its commercial loan portfolio and exit loans it considers “noncore” (see recent article in Inc. magazine).

2. A company’s current loan structure prevents the enterprise from being able to obtain additional financing to fund growth or pay its rising bills (see case study).

3. A company undergoes some temporary difficulty and inadvertently breaches a loan covenant, prompting the bank to put the company into workout (see case study).

4. Following several years of sustained growth, a company may be in a position to transition back from an alternative lender to commercial bank financing, with the aim of lowering interests costs and increasing availability (see case study).

Getting the Best Possible Refinancing

When it comes time for small to lower middle market companies to refinance their loans, they may not always know where to turn to get the most suitable financing. In many cases such businesses fall outside the criteria for traditional bank lending. They may not always understand how they can leverage their tangible and intangible business assets to secure financing, or how to structure their financing in an optimal, cost-effective way.

As a direct lender, arranger, and co-lender, US Capital Partners is able to provide affordable refinancing for your business across multiple asset classes, quickly and efficiently. Often, US Capital Partners is able to increase availability through the discovery of credit enhancers and ways to mitigate credit risks. As your small business grows, US Capital Partners can transition your company back to commercial bank financing, if this is appropriate.

If you would like to know more about how your business can secure the funding it needs, email Jeffrey Sweeney, CEO and Managing Director, at or call
(415) 889-1010.

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