Monthly Archives: July 2023

What can a private company do if it is unable to meet the debt funding repayment conditions?

If a private company is unable to meet the debt funding repayment conditions, it may have several options to address the situation:

Renegotiate the terms of the loan: The company may be able to renegotiate the terms of the loan with …

What is the due diligence process in debt funding capital raise?

The due diligence process in debt funding capital raise is a thorough review of a company’s financial and operational performance, legal structure, and other key aspects of the business that may impact the lender’s decision to provide funding. The purpose …

Typically, how long does it take to raise debt fund capital for a private company?

The time it takes to raise debt fund capital for a private company can vary depending on a number of factors, such as the amount of capital needed, the creditworthiness of the company, and the lender’s due diligence process. In …

When should a company consider raising capital?

A company should consider raising capital when it needs additional funds to grow, expand, or meet its financial obligations. Here are some situations in which a company may consider raising capital:

Expansion: If a company wants to expand its operations, it …

Why do firms choose to raise capital with debt and what the advantages and disadvantages of it for private companies?

Firms choose to raise capital with debt for a variety of reasons. One of the primary reasons is that debt is typically less expensive than equity financing, as lenders generally require a lower rate of return than equity investors. Debt …

A detailed explanation of private company peer-to-peer based financing. 

Private company peer-to-peer (P2P) financing, also known as peer-to-business (P2B) financing, is a type of debt financing that connects individual or institutional investors with small or medium-sized businesses that need funding. P2P financing allows investors to lend money to companies …

A detailed explanation of private company factoring-based financing.

Private company factoring-based financing is a type of debt financing that allows companies to borrow against their accounts receivable. It is also known as invoice financing or accounts receivable financing. Factoring-based financing is a common option for companies that need …

A detailed explanation of private company revenue based financing 

Private company revenue-based financing (RBF), also known as revenue-share financing or income-share agreements, is a type of debt financing that allows private companies to raise capital in exchange for a percentage of their future revenue. It is a relatively new …

A detailed explanation of private company convertible notes 

Private company convertible notes, also known as convertible promissory notes, are a form of debt financing that allows private companies to raise capital while potentially offering investors an equity stake in the company in the future. They are a hybrid …

What are debentures?

Debentures are a type of debt instrument that are issued by private companies to raise capital. They are unsecured bonds, which means that they are not backed by any specific collateral. Instead, they are backed only by the creditworthiness of …

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