The aim is always to minimise risk to the investor whilst showing them an exciting proposition and giving them reasons as to why they should invest in your business. To scale up your business you may need to look further into supply chains and marketing channels, automation and taking on (newly) qualified employees. The most essential part for a business that wishes to scale up is to make sure the right business finance is in place.

Series Round of Finance and M&A

We’re aligned with other financial companies who can provide finance for series round and M&A's. It is worthwhile to consider the alternative finance options below.

External Collateral Finance

Very often projects come with very little to no collateral/assets attached. Given that a lot of these projects are start ups, having sufficient collateral to begin with is a big ask. Banks will often look for collateral as security to lend against and without this collateral, projects can find themselves in a difficult dilemma. The solution? Finding an external collateral provider who can ‘lend’ their collateral to the project (on paper) so as to demonstrate some form of assets to the potential lender. This is quite normal in the corporate finance world whereby one corporation will ‘lend’ their collateral to another company in order to ‘beef up’ their assets on paper which in turn can be loaned against.

Off Balance Sheet Lending

Very often lenders will look for two things on a balance sheet when assessing whether or not to fund a project;

a) collateral/assets

b) company turnover

With a new project is getting off the ground, the above can be difficult to demonstrate given that the project is not yet established. Whilst they are few and far between, there are lenders who will do what is called ‘off balance sheet’ lending. This is where they will assess the project on it’s own merit, strength of management and the potential to start-up, grow and expand. They will also assess the potential to grow the collateral and least not potential for generating revenue. Another words they will lend based on the future and do what is called ‘off balance sheet’ lending as opposed to what the project may or in this case may not have now on their balance sheet.

Lines Of Credit

Corporate lines of credit is a pool of unsecured credit that is made available for borrowing to help manage cash flow. It can be used for a variety of reasons such as; providing a solution to short term cash needs to purchase inventory. The credit line can be structured in a way to offer the borrower convenience and flexibility within the lending term. Below outlines an introduction of two different lines of credit offered by some funders which can offer your company an alternative finance solution.

Revolving Lines Of Credit

If you are continuously seeking Macro to fund ongoing developments, perhaps a revolving line of credit is more suited to your funding needs? This is kind of like having an overdraft facility whereby you can use the credit available, leave it in there to be used at a later date and pay it off early if you wish. This type of funding solution is ideal for projects which keep on expanding and adding to the original project such as a development company who will be building 1, 2, 3, 4 resorts into the future.

For example;
Instead of starting a new loan application each time a new Hotel is being developed, the borrower can open a revolving line of credit. This enables the borrower to develop a Hotel project and before completion, start on a new one without having to submit a new application for funding.
Revolving line of credit offers flexibility to enable the developer to work on several projects simultaneously. As well it enables the borrower the opportunity to pay off any credit early thus not having to carry the burden of interest payments on a large loan whereby the full amount of the loan is not used until later stages of development. *There are associated costs to this product, discussed on a case by case basis.