Subordinated Debt Loans

Our sub debt helps bridge capital shortfalls in acquisitions, leveraged buyouts, and recapitalizations, ensuring you have the funds to close deals successfully. We specialize in:

• Capital gaps – Filling capital gaps in buyouts, expansions, and balance sheet moves.
• Growth capital – Providing complementary capital alongside senior lending facilities.
• Turnarounds – Bolstering declining companies with working capital to support growth

Asset-based lenders and factoring companies can use our Sub Debt to manage their balance sheets.

Here are a few examples of when these lenders would call upon National Business Capital:

• You’re trying to take on a new facility, but there’s a capital gap between the new facility amount and what’s owed to the senior lender. Using a subordinated loan, your client can cover the capital gap, and you can take on the facility by gaining the first lien position.
• A client needs capital in excess of their current facility, but the senior lender is unwilling to provide the client with additional capital. The client can leverage subordinated loans to obtain their requested over advance, while the senior lender retains the right to first lien position.
• You have a client who is no longer in the formula. You notify the client of the change, but they don’t have the capital to cover their existing facility. Instead of taking a loss or unwanted risk, debt subordination can bridge the gap to move the client off your books and satisfy all parties.
• If a prospective client applies for financing but has a first position lien against their assets, you can secure a subordinated loan to repay the senior lender and move their facility onto your balance sheet.