Well-Structured, Custom Financial Solutions for Small and Medium-Sized Businesses (PART I 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.”

Small-business lending by traditional banks has been slow to recover. According to a recent survey, only half of smaller private businesses that attempted to secure a bank loan in the last three months were successful. Likewise, just 34% of applications for an asset-based loan succeeded. Many smaller businesses don’t even apply for financing because they believe they will be declined. This is often because of special circumstances that render these businesses challenging to finance.

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 smaller businesses quickly and efficiently. Below are examples of the firm’s ability to provide funding in ten common special situations.

1. Complex Company Structures

Financing a business comprised of numerous subsidiaries and related entities can be challenging. Recently, Bushman Organic Farms, Inc., a manufacturer and distributor of organic soy products, needed a more suitable financing structure and additional working capital to purchase inventory. This was no easy feat because of the structure of the business, which included 27 other subsidiary and related companies. Nonetheless, US Capital Partners was able to provide a $5 million accounts receivable and inventory line of credit for this business.

2. Businesses Outside the United States

Some US businesses have subsidiaries abroad, for which they may struggle to find suitable funding. More commonly, they simply have trade receivables and other assets abroad. In some cases, the parent company itself may be situated outside the US, with operations or subsidiaries located within the US. In all such cases, US Capital Partners can structure and provide optimal, custom financing. Recently, for instance, US Capital Partners provided a $2.5 million accounts receivable line of credit for a digital media business located in Australia, and also a $500,000 growth-capital term loan for Tora Ventures, headquartered in Alberta, Canada.

3. Concentration Risk and Foreign Customer Risk

Last year, Hans Drake International Corp., a leading producer and distributor of nutritional products, needed scalable financing to increase its inventory and fulfill new orders. But with hundred percent of the firm’s receivables with a single customer in Australia, this represented a challenge for most traditional lenders. Nonetheless, US Capital Partners was able to provide a $1.5 million accounts receivable line of credit scalable to $5 million for the business, despite concentration risk combined with foreign customer risk. 

Jeffrey Sweeney