Development Capital & Refinancing
Sterling Corporate Finance can provide advice and support in securing Development Capital or Refinancing. Funds may be required for expansion, to alleviate cash flow problems or to refinance where current arrangements are unsatisfactory.
Smaller transactions have particular issues and are a speciality even within the corporate finance arena. Our experience in this market will enhance the probability of your transaction succeeding.
Traditional clearing bank loans and overdrafts are secured on the assets of the business. More specialised products such as Invoice Finance or Hire Purchase may allow a higher level of loan relative to the underlying security. In certain circumstances niche lenders will finance more difficult assets such as second hand plant, stock or letters of credit.
For businesses with proven and reliable cash flows, Mezzanine or Acquisition Finance may be available, even if security is lacking. The Government provides assistance through the Enterprise Finance Guarantee (EFG) scheme, which facilitates additional lending to viable businesses lacking adequate security or a proven track record for a standard commercial loan.
Equity Capital is a combination of management's own resources and external venture capital. External equity requires a substantial rate of return, delivered as a combination of running yield (dividends and redemptions) and capital gain on exit.
The business strategy must be compatible with the high growth and exit requirements of equity investors. Typically institutional fund managers will only invest in a small proportion of the plans they receive. There are a large number of fund managers with different investment criteria and market preferences.