Hilary Adams

TEL: (415) 889-1010


US Capital Partners Further Expands Its Range of Innovative Debt Financing Solutions for Smaller Businesses

Private investment bank offers a selection of new creative debt products, including note-based advances on product sales and securities-based project and development financing.

US Capital Partner, LLC has recently further expanded its wide offering of innovative debt financing solutions for small to lower middle market businesses. The firm is at the cutting-edge of small and lower middle market financing, and its creative and dynamic approach combined with best-in-class execution has helped it grow quickly into one of the best investment banks in its sector. The firm is continually expanding its product offering and developing new innovative, custom financing solutions for its clients.

Extended-Term A/R Financing: Note-based Advances On Product Sales

What is it? When a company’s payment terms exceed 90–120 days, its accounts receivable are not generally eligible for traditional asset-based financing. US Capital Partners takes asset-based lending to a new level of innovation by offering debt financing of $5 million or more in these situations. US Capital Partners does this by providing a funded advance against the face value of notes issued by customers to suppliers at the time of purchase.

How it works: A manufacturer or supplier provides materials or other products to a customer for a project or development. Payment terms are 90+ days. This puts strain on the manufacturer, as it cannot use its accounts receivable to secure a line of credit. The manufacturer’s customer is investment grade (BBB or better). When selling its products, the manufacturer now requests a note payable from its customer, and this replaces a typical invoice and accounts receivable for the sale. The term of the note is determined by the customer (6–18 months or longer, depending upon need). US Capital Partners provides a funded advance against the face value of the note in an interest reserve structure.

Project and Development Financing:

What is it? If your company has investment-grade debt or approved equity securities (e.g. public stocks worldwide, ETFs, or US Treasuries), US Capital Partners can provide loans to your business against these assets. Loans have a 65–80% advance rate depending on collateral quality and trading volume. The funds can be used for any purpose. The term of the loan is negotiable too, and funding follows a rapid and simplified due diligence process.

How it works: A strategic, publicly traded sponsor is seeking to provide off-balance-sheet financing of $5 million or more for a project or development located in the United States or abroad. US Capital Partners can use the borrower’s stock or investment-grade debt as the sole collateral to provide the required financing. This is a useful product also for properly structured investment funds that hold these assets under management.

To learn more about US Capital Partners’ wide range of innovative products, email Jeffrey Sweeney, CEO and Managing Director, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

Download a PDF of this Press Release