Junior Capital: Fill Funding Gaps Without Sacrificing Equity

Junior Capital takes a secondary position behind senior debt, enabling you to bridge additional financing needs. It often features higher returns for investors but lets you secure supplemental capital while keeping your core debt structure intact.

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Customer Testimonials

The financing solutions provided by Commercial Finance Partners were exactly what I needed. Their team was professional and helped me every step of the way.

Matthew Rodriguez
Business Owner

I highly recommend Commercial Finance Partners for any business financing needs. Their team is dedicated and knowledgeable, and they truly care about their clients’ success.

Karen Gonzalez
CEO

The financing process with Commercial Finance Partners was smooth and efficient. Their team was knowledgeable and helped me find the right solution for my business. I highly recommend them.

Charles Jackson
Business Owner

Our Partners

Junior Capital Services

Junior Capital typically targets growth initiatives or acquisitions that exceed what senior lenders can provide. By accepting a subordinated claim on assets, investors or lenders offer higher-risk funding in exchange for more attractive terms. This arrangement means you can finalize larger deals, prop up working capital, or invest in strategic expansions—even if your primary loan facilities are maxed out.
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Commercial Finance Partners tailors Junior Capital solutions by evaluating your existing senior debt covenants, projected cash flows, and risk thresholds. We strive to ensure the extra financing doesn’t push repayment obligations beyond healthy levels. The result is a well-balanced capital stack that harnesses junior funding’s benefits—like flexible usage and minimal equity dilution—while maintaining synergy with any existing senior obligations. When properly orchestrated, Junior Capital can be the deciding factor in capturing an acquisition window or fueling an ambitious scaling plan.
Key Benefits of Junior Capital:
  • Supplement Existing Debt:
    Access additional funds without renegotiating senior agreements.
  • Avoid Equity Loss:
    Limit ownership dilution by relying on higher-risk debt instead of new stock.
  • Strategic Flexibility:
    Target large projects or expansions that surpass traditional loan ceilings.
  • Improved Capital Stack:
    Combine junior and senior loans to enhance total borrowing power.
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Junior Capital Business Case Studies

How Junior Capital Finalized a Mid-Market Merger

Closed funding gap after senior loan cap:
  • Supported synergy integration
  • Avoided major equity sale
  • Unified brand expansions
  • Preserved board dynamics
  • Drove post-merger growth
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How Junior Capital Secured a Tech Development Launch

Covered costs beyond main credit line:
  • Accelerated R&D timelines
  • Retained founder ownership
  • Improved product readiness
  • Cemented market leadership
  • Enhanced investor interest
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How Junior Capital Enhanced Working Capital

Supported inventory spikes for large orders:
  • Streamlined supply chain deals
  • Avoided backorder embarrassment
  • Reduced operational bottlenecks
  • Protected senior lender relations
  • Strengthened customer trust
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Junior Capital Frequently Asked Questions (FAQs)

Commercial Finance Partners was founded by industry veterans, and has been in business since 2014!

The importance of Junior Capital

When building a robust debt strategy, every layer—senior, mezzanine, or junior—serves a distinct purpose. Debt Capital Advisory ensures these layers coexist harmoniously, minimizing overlap or conflict. Junior Capital, in particular, underscores how specialized financing can energize bold moves while preserving equity and day-to-day liquidity.
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Commercial Finance Partners outlines a cohesive plan to weave different loan types into a balanced framework. By managing repayment schedules, interest obligations, and investor expectations, we keep each capital piece working collectively. Over time, that synergy breeds financial adaptability, safeguarding your enterprise against sudden downturns and positioning you for consistent growth opportunities.
Why Choose Commercial Finance Partners:
  • We identify the precise funding gap junior debt can fill.
  • We coordinate junior facilities with existing senior covenants.
  • We protect equity stakes by minimizing external ownership demands.
  • We speed up transactions through efficient deal structuring.
  • We provide ongoing oversight to keep your overall debt stack in sync.

Director of Debt Capital Advisory Bill Krebsbach

Bill Krebsbach, Director of Structured Finance Services at Commercial Finance Partners (CFP), brings extensive expertise in structuring and advising on sophisticated debt financing solutions. With years of specialized experience in corporate credit analysis, private placements, and structured finance, Bill guides clients through the complexities of capital markets to secure financing arrangements that support long-term growth. His deep understanding of debt capital allows him to align creative financial strategies with each client’s specific operational needs and growth ambitions.
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Since joining CFP, Bill has significantly expanded the firm's capabilities in debt capital advisory services and structured financing, providing strategic counsel to businesses navigating intricate financial environments. His advisory approach emphasizes transparency, tailored financing structures, and strategic insights that enable clients to optimize their capital structure and improve overall financial stability. Bill’s dedicated guidance and proven ability to deliver targeted financing solutions have positioned him as an invaluable resource, fostering lasting relationships built on trust, performance, and consistent results.