There are many reasons ITF’s
clients turn to debt to support corporate growth.
Debt is attractive because it can be used to avoid
equity dilution while providing significant working
capital on reasonable, flexible terms. ITF Global
Partners assists clients through the educational process
surrounding the decision to use debt financing, explaining
the viable alternatives that will meet the client’s
specific needs. ITF Global Partners provides companies
with additional liquidity without dilution. We typically
do this for those companies with intellectual assets
(patents) which have had revenue attributed to them.
Additionally, we can provide liquidity on an accounts
receivable basis for those companies who have cash
outlays associated with the completion of contracts.
As an example, ITF recently secured for one of our
clients a $20-million facility renewable for three
years for total of $60 million of operating capital.
This was accomplished in the secondary debt market
and provides the company the liquidity to achieve
its business plan.
Typical financing structures
include:
- Senior
Debt Financing. Asset lending designed to
meet seasonal working capital needs involving current
asset buildups. Frequently used in conjunction with
term loans.
- Secondary
Financing. More
liberal lending based on different asset classes
and basic business viability. Designed for high-growth
companies and the chronically under-capitalized.
Capability to structure and place small loans of
$1-5 million.
- Debtor-in-Possession
Financing. For
companies in, or contemplating, Chapter 11.
- Reorganization
and Exit Financing.
For a reorganization plan taking a company out of
Chapter 11.
- Purchase
Order/Outside Equity Financing.
Quasi-equity for purchase orders beyond a company's
ability to finance; suitable for high-growth firms
lacking necessary capitalization.
- Term
Financing. Cash
flow-based lending for a company's future predictable
cash flows with tenor exceeding one year
- Leasing
and Equipment Financing.
Asset-based financing leveraging a company's hard
assets for various business purposes.
- Acquisition Financing.
Leveraged Buyouts/Management Buyouts.
- Bridge Financing.
Short-term lending in anticipation of long-term
financing.
