What is Venture Debt It is a debt instrument to a rapidly growing company that would not otherwise qualify for traditional loans. The debt has a reasonably high interest rate (10 to 15%) and has a small warrants package attached which provides the debt provider the option to purchase equity at a pre-agreed valuation […]
Seafood production company who had been with their current bank for over 20 years. The business had grown rapidly over that time but the banks attitude towards them had not. Following a rejection for an increase in their facilities, Debt Stream reviewed the existing terms and found that their current facility was at a below market LVR, above market pricing and still included personal guarantees and mortgages from the Founder despite the facility being over A$15m. Debt Stream put together a concise summary of the opportunity and introduced new lenders. The incumbent bank realized that they were imminently going to lose a long term client and put forward a new facility that addressed all concerns.
Donald Trump, 100-year drought, Royal Commission, Kim Jong Un, Trade Wars, Climate Change – this is all starting to sound like Billy Joel’s famous song “We didn’t start the fire”. Every day the papers tell a new tale of woes, a new set of threats on the horizon. Is this just background noise that has been “always burning […]
In the world of money lending, Goliath very regularly sends David packing with his sling shot between his legs
What you should think about when Private Equity is knocking at the door.