Enhanced Market Insight: Achieve a deeper understanding of the funding landscape and the diverse range of available providers, tailored to your specific needs.
- Very diverse funding market
- High street bank, challenger, debt fund, abl
- Who owns, what are the features, where does the money come from
- How does the funding impact over the longer term
- Why should a borrower look at a range of different options
The debt market comprises a diverse array of lenders, including senior banks, alternative lenders, private funds, challenger banks, institutional investors, peer-to-peer lenders, high-net-worth individuals and others. Each lender operates within its own specific niche, whether focused on a particular sector, asset class, type of lending, leverage appetite or pricing.
It is crucial to consider a range of lenders, as each approaches transactions differently. For example, senior banks may be risk-averse but offer competitive pricing, while private funds are more focused on returns and may provide flexible structures such as PIK interest, bullet repayments, higher leverage levels and committed accordion facilities to secure business.
While costs are important, it’s essential to consider how the funding will impact the business in the long term. A lender may offer a lower price, but if they impose leverage restrictions, could that hinder the business’s future growth?
When supporting businesses in raising funding, we conduct a comprehensive market-wide process tailored to your specific funding needs. We then meet with senior management to present transparent and detailed feedback on all received offers. This feedback covers all aspects of a term sheet, including rates, fees, leverage parameters, borrowing bases, special conditions, and more. Ultimately, this process empowers management teams to make informed decisions about the best lending partner for their business.
