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    Contact Blacksail Capital

    1 Toronto Street
    Toronto, ON M5C 2V6

    Telephone: 416.708.8746 (CANADA)
    Telephone: 512.710.6737 (US)

    News & Blog

    News & Blog

    Why Should Companies Use Alternative Debt?

    February 27, 2020

    Why Should Companies Use Alternative Debt?

    Alternative finance companies typically use the mantra: “Where to go when the banks say NO”.

    Which in and of its self makes perfect sense, but there are so many other situations where it also makes sense to seek alternative financing. The following is a short list of situations where business owners should consider alternative financing to accomplish their goals, even if it is only a short-term solution to take their organizations to the next level before eventually returning to traditional bank financing:

    • Private Equity Financings – Asset-Based Lenders (ABL) have long been the “red-headed stepchild” with Private Equity (PE) firms; however, upon further review, ABL lenders can help to reduce equity contributions and enable more flexible structures in many PE deals.
    • Companies Making Transformational/ Bolt-on Acquisitions – Alternative financiers can enable the growth of private companies with less or no additional cash equity.
    • Pure Growth Capital – Enable growth opportunities, where banks typically do not like the use of leverage.
    • Consolidation of Shareholder Base – Partner with companies to buy out minority shareholders.
    • Enable a Liquidity Event – Help create a special dividend to shareholders.
    • Increase Leverage for Acquisitions – Help raise junior debt.

    And of course, where to go when the banks say NO? Just move on! – Help enable an exit strategy from bank lenders and keep us in mind to help your businesses get to the next level.

    Blacksail Capital Partners is committed to helping companies solve their problems when other lenders can’t or won’t.


    For more information on Blacksail Capital Partners, please contact us.


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