Getting More From Your Bank – Example

Getting More From Your Bank – Example In the last post, I made the point that if you want more capital from your bank and they won’t give it you, then then go out and get financing proposals from another bank and your existing bank is likely to step up and match it.  Now, I will share an example to illustrate the point.  Earlier this year, Lantern Capital Advisors had a client that was coming out of a downturn where they had generated losses the previous two years. The reasons for these losses were the result of ‘self inflicted’ strategy […]

Getting More Capital Out of Your Bank

Getting More Capital Out of Your Bank Growing companies often struggle to get enough capital to grow the way they want. Its not uncommon for business owners to wine and dine their banker then ask for a credit increase and be denied. A way to change that dynamic is to go out and shop for a new lender. If another bank is willing to provide a bigger credit facility, there is a good chance your existing bank will step up and match the other offer (saving you the trouble of changing banks). I’ve seen this play out more times than […]

Assess You Company’s Debt Capacity

If you are interested to refinance your company’s debt or get additional capital, theres is a fairly simple rule of thumb that can help you quickly gauge your financing alternatives and make sense of today’s lending environment. This white paper by Lantern Capital Advisors identifies the simple corporate finance rule of thumb and helps apply it to real business situations. Read: White Paper By Lantern Capital Advisors:  Access Your Company Debt Capacity Assess Your Company Debt Capacity

Creative But Little Known Source Of Debt Financing

High Growth companies (Gazelles) looking for financing often don’t realize they may be able to finance their company with various forms of creative debt structures. This however is rarely debt you would find at your local bank. These more exotic forms of debt are provided in the capital markets by a whole variety of specialty lenders. These lenders may include hedge funds, insurance companies, SBICs, DBCs, special assets lenders, and many others. Few entrepreneurs know these groups because their marketing dollars are spent on private equity and buyout firms not entrepreneurs. Why? Because private equity represents serial customers. Unlike your […]

Capital Shortage? Hardly

In the midst of this credit freeze, I am routinely always asked, “Is there ANY one out there funding growing businesses?” My answer is, “of course!” Just like Warren Buffet is spreading his money around, the same can be said for SOME investors and specialty lenders and senior lenders. For every banker that is posting his resume to, there’s another banker/lender working 60 hours a week. The real trick is knowing who is (really) doing what. But frequently talking to bankers/lenders/investors the truth is, some are very busy and others aren’t. Not only do I know this from personal […]