DEBT FUNDING ADVISORY
WHAT WE DO
- Fortress can help you access debt funding from a variety of sources
- Fortress advises its clients on the debt options available to them and what options are best for them
- We facilitate discussions with lenders and help you prepare your funding applications to maximize the chances of securing debt funding
WHAT IS DEBT FUNDING?
Debt financing may be difficult to obtain, but for many companies, it provides funding at lower rates than equity financing
As long as you are able to make your payments, debt financing can be a good way to start a business if you don’t want to be beholden to investors
There are several different types of debt funding options for small businesses which include: government backed loans, merchant cash advances, lines of credit, and equipment loans
Debt financing is when a company borrows money from an institution and in return for the money, the company is required to repay the principal and interest on the debt
BENEFIT FROM OUR SERVICES IF
- You are primarily focused on business operations and don't want to spend valuable time seeking and negotiating terms with prospective lenders
- You do not have a financial background and are feeling overwhelmed with communicating with financial institutions
WHY IS THIS
IMPORTANT TO YOUR BUSINESS?
- If debt is determined to be an appropriate funding source for your business, then finding the best available debt financing option is crucial
- The wrong type of debt can severely harm a business and can result in you having to spend more time dealing with your lenders and repaying the debt when you really should be focusing on growing your business
- Using debt to fund your business can improve your return on equity and increase the amount of funding you have access to
DISCUSS GOALSFirst thing is we determine the status of your business and why you are looking to raise additional capital.
PROVIDE OPTIONSAfter our initial conversation Fortress will advise if it thinks if debt funding is currently right for you, and if so, what the debt debt financing options would be.
GATHER INFORMATIONAfter we determine the best debt options for you we begin the process of contacting potential lenders and assembling the necessary information. Fortress will facilitate meetings with prospective lenders and ensure that the information provided to them is what they require to fairly evaluate your company as a loan candidate.
RECEIVE OFFERS AND NEGOTIATE TERMSOnce prospective lenders have had the time to review your information you will begin to receive offers from them on the terms at which they are willing to lend. Fortress will walk you through these terms and will work with you to negotiate terms that are agreeable to you.
FINALIZE FUNDINGAfter terms have been agreed to by you and the lender the next step will be to close the deal and complete funding. Here you will receive the money from the lender and you can then begin utilizing the funds.
DEBT FUNDING AVAILABLE
BUSINESS CREDIT CARDSThe right business credit card can help you establish business credit, keep business expenses separate, & grow your business with ease.
MERCHANT CASH ADVANCEWith a Merchant Cash Advance a lender will buy a piece of your business’ future revenues and you’ll receive the cash advance as a lump sum payment. Payments fluctuate along with your sales volume.
GOVERNMENT BACKED LOANA government-backed loan is guaranteed by the government and provided through various loan programs.
These are generally low-cost funds are available for purchasing inventory or equipment, buying commercial real estate, or funding the acquisition of other businesses.
INVOICE FINANCINGWith invoice financing, you are pre-selling your unpaid invoices to another company in exchange for a lump sum payout.
The accounts receivable financing service will retain a fraction of the value while they wait for your customer to pay. You’ll get the remaining funds owed when the customer has paid, minus the weekly fees due.
EQUIPMENT FINANCINGEquipment financing and equipment leasing allow you to start using the equipment your business needs to generate revenue and pay it off over time.
With the equipment itself serving as collateral, you can obtain much lower interest rates than you might see with unsecured business loans.
SHORT TERM BUSINESS LOANSLike traditional term loans, short term business loans provide companies with the necessary working capital to overcome a financial hurdle, pay off higher-interest debt, or quickly jump on a great opportunity when it comes up.
The main difference is that your short term financing will need to be fully repaid soon, usually within two years.
START-UP LOANSWith strong personal credit, even first-time business owners can qualify for a loan to help with initial startup costs.
Startup funding is available in the form of business credit cards, credit line builders, SBA loans, non-profit microloans, personal loans for business use, and more.
TERM LOANSTraditional term loans are large, flexible, installment loans that small businesses can use to achieve any number of goals.
Whether it’s a major equipment purchase or an expansion project, getting that extra infusion of working capital is something that nearly every business needs at some point during its life cycle.
PERSONAL LOANS FOR BUSINESSPersonal loans commingle business finances with personal finances, but if you don’t have any business credit history, it may be the easier route.
Keep in mind that because personal loans don’t require business documentation, you’ll get access to funds much sooner than you would with a business loan.
BUSINESS LINE OF CREDITFlexible, convenient, and easy to use, a business line of credit gives your company quick access to revolving credit.
And though you may find business credit cards to be equally convenient, you’ll typically see lower interest rates, fewer fees, and more flexible repayment terms with a line of credit.
PRICINGOur fees are based on a combination fo monthly retainer and a success fee.
During the period where we are working together there will be a monthly retainer starting at $1,000 per month. The retainer is based on the size and complexity of the financing you are applying for.
Fortress charges a success fee between 2%-5% of the total loan proceeds, depending on the complexity of the debt financing,. The success fee will be reduced by the monthly retainer payments made. This billing approach ensures that Fortress does not benefit from drawn out processes and motivates us to efficiently secure the funding you are looking for.