The Capital You Need When Your Bank Says No!
► Cash Flow Loans
►
Secured Revolving Lines of Credit
►
Working Capital
►
Monetization Of Service Contracts and Other Financial
Contracts
►
Debt Restructuring
► Construction Mobilization Financing
► Tenant
Improvement Financing
Cinergy Commercial Capital
Offers A Fast, Easy And Cost Effective Way To Provide
Working Capital For Your Business
What Is A Cash Flow Loan?
Cash flow loan is a type of debt financing, in which a bank lends funds, generally for working capital, using the expected cash flows that a borrowing company generates as collateral for the loan.
To secure repayment, the bank covenants a borrower on such levels and ratios as enterprise value, EBITDA, total interest coverage ratio, total debt/EBITDA, and so on. They will also take a charge over the assets of the business to provide the lender with the ability to take control of the cash flows in the event of default.
In contrast, an asset-based loan is lent against company's assets. Senior stretch loan is the mix of the two.
Cash flow loans are usually senior term loans or subordinated debt, being used for funding growth or financing an acquisition.
Contact Us
What Is A Secured Revolving Line Of Credit ("Revolver")? Go Back
A revolver is a loan which can be drawn down and repaid and are usually secured by the borrower’s receivables and/or inventory. This kind of asset-based loan is designed to optimize the availability of working capital from the borrower’s current asset base. Here’s how it works. The borrower grants a security interest in its receivables and/or inventory to the lender as collateral to secure the loan. This grant of security interest creates the borrowing base for the loan. As receivables are paid, the cash is turned over to the lender to pay down the loan balance. When the borrower needs additional working capital, the borrower requests another advance. Because the borrower’s customers are generally not notified of the assignment of the accounts to the lender, the borrower continues to service its receivables. The borrowing arrangement is usually transparent to the borrower’s customers.
A revolving credit facility is actually a very cost-efficient alternative for a business that needs to liquefy its working capital without having to slow growth or add to its equity capital. Cash is available as needed, and any cash not needed on a daily basis is used to pay down the loan balance and minimize interest expense. Typically, the minimum size of a Revolver is $1 to $2 million.
What Is An Asset Based Loan?
A commercial asset based loan provides businesses with immediate funds and ongoing cash flow based on a percentage of the value of your company’s assets such as commercial accounts receivable, purchase orders, business equipment and machinery, and recurring revenue contracts. Asset based loans are applicable to virtually all business types and industries including:
- Manufacturing
- Retail
- Distribution
- Construction
- Medical
- Service
- Others
Funds from asset based finance can be used for day-to-day operating expenses, or as capital for restructuring, turnarounds, mergers and acquisitions and buyouts.
Contact Us
A working capital loan is a loan that companies can get to fund any aspect of the everyday operations of a business, such as payroll, rent, etc.
If you have a new business, or a business that has suffered in the current economic climate, Cinergy Commercial Capital can help. Although you may not like the idea of putting down collateral for a loan, your options are limited and to get the needed working capital you may have to compromise just a bit.
Monetization of Service Contracts and Other Financial Contracts Go Back
There are three significant requirements needed for a client to utilize this monetization financing:
-
An assignment of/or an absolute and unconditional promise to pay from an investment grade/near investment grade obligor or an acceptable substitute financial instrument backing the transaction,
-
Predictable cash flow
-
Date certain payment.
An investment grade/near investment grade obligor for this program is typically rated by S&P and Moody’s with an acceptable rating (BB or higher). However, there are exceptions and substitutes for these rating criteria. If a company is not rated there are alternate procedures to qualify said obligor. An obligor is typically a customer or other third party that has contractually agreed to make payments to the client within a term of 1- 30 years. In one sense monetization financing can be viewed as a longer-term variation of factoring without the high cost and other major differences associated with factoring.
Contact Us
This financing vehicle is differentiated from and more advantageous than traditional financing for unqualified borrowers:
-
Low, competitive interest rates Interest rates are determined by a combination of term of the loan, credit of the obligor, and treasuries at the time of the commitment
-
Unique flexibility in payment terms
-
Transactions available at levels starting as low as $1 million with virtually no upper limit
-
Off balance sheet financing can be structured in many cases, allowing corporate assets to be still available for other financing's
-
Completely non-recourse to client
-
Extremely diverse industries financed, no industry restrictions
-
Lender does not rely on underlying transaction but solely on the unconditional promise to pay by investment grade/near investment grade obligor or equivalent substitute collateral
-
Generally 100% LTV of the present value of the payment stream can be funded versus lower LTV’s with traditional financing
-
No geographical restrictions, transactions may be anywhere in the United States
-
Quick approval and expedited closing facilitated by reduced due diligence and the monetization process
Contact Us
Debt Restructuring - Improve Your Cash Flow Go Back
Growing companies often enter into multiple loan agreements over time to pay for equipment needed to expand their businesses. These loans have different maturities and in most cases, the companies have built in equity in the equipment. Cinergy will pay off all your lenders and refinance all your equipment into one loan. This can result in reduced payments of 30% or more, so your cash flow and bottom line are greatly improved.
Contact Us
Construction Mobilization Financing Go Back
Are you waiting 60, 90 or 120 day to get paid for your work? Have you won a large contract but need capital to get started? We can lend you money for working capital or any other reason using the very construction contract(s) you just won. We can even fund you the capital before the project starts – just when you need it the most! Contracts can be public or private with $500,000+ value and multiple smaller contracts can be combined.
- Allows you to focus on getting the project started and finished – not on invoicing
- Gives you the capital to grow, win bigger projects and more contracts
- Look better for bonding
- No financial covenants
- Available for Contractors and Sub-Contractors
Contact Us
Tenant Improvement Financing Go Back
Negotiate better lease terms with your landlord by providing your own tenant improvement financing. Cinergy offers flexible terms on financing for $100K to $2MM. Financeable improvements Include:
- Leasehold Improvements
- Soft Costs
- Irrigation Systems
- Lighting Retrofits
- Carpeting / Furniture
- Wiring / Sheet rock
- Plumbing
- Signage
This is a credit focused financing, which generally requires the company have a minimum profitable and cash flow positive operating history. Startups and early stage companies can obtain financing with a strong personal guarantee.
Contact Us |
