How to Secure the Financing Your Business Needs to Grow

With many business owners anticipating volatility, discover the challenges and solutions to securing the expansive financing your business needs to implement its growth plans.

Business Owners Anticipate Growth

CEOs are feeling increasingly optimistic about the outlook of their businesses this year. According to a recent survey by Pepperdine University, small and medium-sized businesses (SMBs) expect to increase their annual revenue this year by an average of 9.7%. Reflecting this, 74% of businesses with an annual revenue of $5 million to $100 million reported that the main purpose for raising expected financing is growth or expansion, including acquisition.

Challenges in Sourcing Growth Capital for Your Business

Because of capital markets volatility and regulatory constraints placed on banks, as well as the fragmented nature of the commercial finance sector, securing sufficient capital to support growth remains a challenge for many SMBs. Even the commercial finance sector has been facing constraints on lending because bank leveraged lines have been reduced and underwriting criteria have become more stringent for their lines of credit. As a result, nearly two-thirds of SMBs reported that it is currently difficult to raise new external financing.

Many loan applicants seeking additional working capital or growth capital are thriving enterprises that for one reason or other fall outside the standard parameters for traditional bank finance, and now even commercial finance. Often, they approach the wrong type of lender or fail to present their application in the best way from a lender’s perspective.

How US Capital Global Can Help

US Capital Global is at the cutting-edge of SMB finance and has been for over 20 years. The firm has a proven and well-developed capability for providing growth capital for SMBs. The firm offers debt financing off its balance sheet, co-investment and syndication, and also equity financing, always intelligently structured to meet the particular needs of its clients.

Recently, for instance, US Capital Global structured and provided a custom $8 million credit facility for a medical disease-testing company based in the Southeastern United States, to fund the development of its pioneering DNA biomarker technology for identifying diseases like prostate cancer. Similarly, US Capital Global structured and put in place a $100 million line of credit for an alternative asset management firm, as well as $95 million in growth financing for an international perfume distributor headquartered in the United States.

US Capital Global examines transactions on a case-by-case basis. Its financing professionals have years of experience, allowing them to structure custom debt and equity finance solutions for SMBs quickly and efficiently.

To learn more about how your business can secure the funding it needs, email Jeffrey Sweeney, Chairman and CEO, at [email protected] or call (415) 889-1010.