Structured Lending Solutions: Fueling Your Next Big Move

Term loans are a fundamental financial tool that provides a lump sum of money, which is repaid over a set period with a fixed or variable payment structure. These loans are typically used for major business expenses such as expansion, capital improvements, or large equipment purchases. Term loans can also acquire other businesses, buyout partners, return capital to shareholders, and other strategic initiatives. The key benefits of term loans include predictable repayment schedules, flexible payment options structured to match business cash flow, potentially lower interest rates than credit lines, and the ability to secure large amounts of capital.

Benefits of Term Loans

1. Predictable Payments: Term loans can provide fixed repayment schedules, making it easier to manage your cash flow.
2. Larger Loan Amounts: Businesses can access substantial sums, enabling significant investments.
3. Flexible Terms: Loans can be tailored with varying lengths and structures to suit business needs. Interest-only payments, balloon payments, and creative amortization can all be features of structured term loans.

Suitable Industries and Scenarios

Term loans are versatile and can be applied across various industries. They are particularly beneficial in scenarios where businesses need substantial funding for:

• Business Acquisitions and Partner Buyouts: Acquire new businesses or buyout other shareholders
• Expansion Projects: Opening new locations and increasing production capacity.
• Equipment Purchases: Buying machinery, vehicles, or technology.
• Working Capital: Managing cash flow during growth periods.
• Debt Refinancing: Consolidating existing debts into a single loan with better terms.

Term Loan Types – At Commercial Finance Partners, we provide several specific term loan options to address different financial needs:

1. Cash Flow-Based Term Loans:
   • These loans are based on your business’s historical or projected cash flow.
   • They can be funded rapidly, sometimes within 24 hours.
   • Ideal for businesses with solid revenue streams but lacking significant physical assets.
2. Bridge Loans:
   • Short-term loans are designed to “bridge” the gap until permanent financing is secured.
   • Useful for real estate projects or transitioning to long-term credit facilities.
   • They offer expedited underwriting and funding, providing quick liquidity.
3. Situational Capital Term Loans:
   • Tailored for special situations requiring non-traditional financing solutions.
   • These are often subordinated debt options, providing growth capital without diluting ownership.
   • They can be structured based on cash flow, collateral, or guarantor strength.
   • Suitable for unique scenarios like opportunistic note purchases or supporting SaaS businesses with recurring revenue models.