Working Capital Requirements
Finance qualifying operating needs supported by the company's recurring cash flow.
Financing Based on Operating Cash Flow
Access capital structured around operating cash flow, financial performance, and repayment capacity. We provide cash flow financing solutions for established businesses.
Not every business's financing requirements can be addressed through a traditional asset-based credit facility.
Cash flow loans are structured primarily around a company's ability to generate sufficient operating cash flow to meet its financial obligations.
Unlike asset-based lending, where financing availability depends largely on eligible collateral, cash flow financing places greater emphasis on financial performance, recurring cash generation, existing debt obligations, and repayment capacity.
How We Evaluate Cash Flow Financing
We assess historical and projected operating performance, profitability, leverage, existing financial commitments, and the company's capacity to service additional debt.
Depending on the transaction, financial metrics such as EBITDA, leverage ratios, and interest coverage may help determine facility size, covenants, and repayment terms.
Additional collateral or guarantees may also support the financing structure when appropriate.
Capital Supported by Operating Performance
Business Expansion
Support investments associated with growing existing operations or expanding business capabilities.
Strategic Investments
Provide capital for eligible projects and initiatives supported by the company's financial position.
Extended Operating Cycles
Address financing needs arising from longer production, procurement, or business cycles.
Structuring Financing Around Repayment Capacity
- 01
Financial Assessment
We evaluate historical financial statements, cash generation, profitability, leverage, and debt obligations.
- 02
Facility Structuring
We determine an appropriate financing amount, term, repayment arrangement, and applicable financial covenants.
- 03
Funding & Repayment
Following approval and documentation, financing is provided according to the agreed structure, with repayment supported primarily by operating cash flow.
Financing Parameters
Terms are indicative and subject to underwriting and transaction requirements.
- Facility Size
- $3M–$100M
- Financing Basis
- Operating cash flow and financial performance
- Structure
- Cash-flow-based loan
- Facility Term
- 12–36 months
- Repayment
- Based on operating cash flow and repayment capacity
- Security
- Determined by the individual transaction
- Eligibility Considerations
- Financial performance, leverage, cash generation, and existing obligations
$10 Million Facility, Increased to $15 Million
Supporting an Agribusiness Group's Working Capital Requirements
Agribusiness
The Challenge
An established agribusiness group required financing to support supplier payments and ongoing operations across extended agricultural production cycles.
Our Solution
We initially approved a $10 million revolving loan, providing working capital through short-term advances within a 36-month facility. The structure incorporated financial covenants based on leverage, net worth, and operating performance, together with collateral and corporate guarantees. A few months later, we increased the facility to $15 million, extending its maturity to 2028. The revised structure included scheduled principal repayments, with operating cash flow identified as the primary repayment source.
The Result
The expanded facility provided additional approved financing capacity for the group's working capital requirements.
Industries Using This Solution
See how this structure can address industry-specific cash cycles and collateral.
Explore Financing Supported by Your Cash Flow.
Discover how your company's financial performance may support a customized financing facility.