Subdebt is a highly customizable financing solution based on the strength of your business and can be structured to fit different types of security, repayment terms, and debt servicing capacity. Security is generally subordinated to that of a senior lender. Terms may include amortization of up to 8 years and interest payments that match the timing of your company's cash flow.
Facilitates growth and event-driven transactions, usually without diluting the owner's equity in the business.
Always tailored to your company's unique cash-flow.
While subdebt is more expensive than conventional bank debt, it is a very cost-effective alternative to diluting a company’s existing shareholders. It is sort of like renting some equity for your business.