Financing & Investment

Financing and Investment
Turnaround Finance
Turnaround finance is a key component in helping a business through its distress by giving your business the cash injection it needs to drive a turnaround strategy.

Banks have tightened their commercial lending criteria and increased collateral demands. Alternative financing through various sources of non bank lenders may be another appropriate option and can include:
  • Cash Flow Loans
  • Bridge and exit financing
  • Second Lien and Mezzanine Loans
  • Asset Based Loans
  • Accounts receivable and Factor Financing
  • Subordinated Loans
  • Venture Capital Funds
  • Private Equity Financing
Debt vs. Equity
There are two basic ways to finance a small business: debt and equity.
  • Debt – provides a set amount of cash that has repayment or maturity terms within a period of time. Most loans are secured by assets, which means that the lender may liquidate these collateral assets if the loan is not repaid within terms as one of the remedies. A loan can also be unsecured, with no specific asset securing the loan.
  • Equity – selling a part of your business (known as selling an equity stake). In this case, you don’t usually have to pay back the investment because the new owner of the equity may receive the benefit of voting rights, dividend, and cash flow associated with that equity stake.
How you finance your business to enhance your turnaround goals is critical. RJ Reuter can expertly guide you and determine the correct financing structure to suit your short and long term turnaround strategy. The key is to have a realistic plan to bring your business back to profitability. We will help you prepare a solid turnaround plan that will attract financial support and identify the best solution for you.
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