Debt Financing

For owners wishing to maintain 100% control of their business, yet needing capital to fund growth requirements or pursue acquisitions, debt financing is the preferred option.  VR assists such clients by matching the financing needs of our clients to those of debt capital sources, and preparing our clients to fully meet lender’s exacting requirements.   Many of our clients are frustrated with less than ideal service from their local bank.

We work with a broad spectrum of lenders, including but not limited to:

• Hawaii and mainland commercial banks and SBA lenders
• Asset-based lenders
• Mezzanine and subordinated debt providers
• Small Business Investment Companies (SBICs)
• Business Development Companies (BDCs)
• Registered Investment Companies (RICs).

Debt financing can be used for a variety of purposes:

• Pay off owner’s personal loans to the company
• Finance new equipment, facilities or other expansion opportunities
• Reduce interest costs
• Finance acquisitions of other companies
• Allow one partner/ shareholder/ member to buy out another.

We assist clients seeking debt financing in a variety of ways:

• Finding the lender(s) best suited for the proposed financing.  This is paramount.  Lenders vary dramatically in their lending criteria and preferences, depending on the nature of the borrower’s business, financial track record, nature and quantity of collateral, company strengths and weaknesses, and planned use of funds.  The fact that a business has been rejected repeatedly in its financing attempts means little for their prospects if they’ve been approaching the wrong lenders.  In many cases, the right solution may involve financing from more than one source.
• Evaluation of growth plans and planned acquisitions
• Preparation of business plans, financial models and presentations to prospective lenders.
• Assistance with term sheet negotiations and closing the transaction.

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