Bridge, Inventory & Trade Financing

LOAN CRITERIA AND USES

Investment Strategy
Maturity: 1-12 Months
Size: Investments Ranging from $1-15mm
Criteria: 10% of revenues or 1x TTM EBITDA
Cost: MOIC 1.15x-1.45x
Rank: Senior/Junior Secured to off-balance sheet
Geography: US Based
Collateral: AR, Inventory, Real Estate, Equipment
Prepayment: Discount of 30-50% within initial half of maturity
Time to Close: 3-4 Business Days
Short-Term Opportunistic Credit Scenarios:

- Inventory Financing: A retail business secures a short-term line of credit to take advantage of bulk purchase discounts from suppliers. The loan is repaid quickly as inventory is sold.

- Trade Financing: A company obtains trade credit from suppliers or banks to finance the purchase of raw materials or finished goods. The credit is used to complete production, and the loan is repaid once the products are sold.

- Bridge Financing: A corporation is eager to acquire a competitor but are lacking immediate funds and in between financing rounds. They use bridge financing to secure the deal quickly and boost their balance sheet with cash in a plan to arrange permanent funding later, ensuring they don't miss out on a valuable acquisition opportunity.

Key Insights:

A trusted resource for clients in need of bespoke debt vehicles outside their traditional practice.
• The deal structure offers a range of options from Interest-Only periods to attractive discount periods on term loans and credit facilities.
• These non-dilutive loans provide efficient debt capital to our borrowers with greater timeliness and flexibility than traditional bridge loans or convertible notes.

“STOC” Overview: Short-Term Opportunistic Credit (STOC) is a redit solution we offer to enhance a company's enterprise value without diluting ownership.