If you have had difficulty securing financing for your business for any of the following reasons, Hennessey Capital’s working capital options may be right for you:

• Your company has not been in business long enough to secure adequate financing
• Your company is not yet profitable
• You have maximized your current facility & are receiving new orders
• Your company has experienced several years of losses
• Your company has negative equity
• Your company is a government supplier
• You cannot produce financial reporting
• You are in need of A/R administration and credit review assistance
• You are in the process of restructuring
• Your credit scores do not meet bank minimums
• You experience seasonal or one-time orders
• You need to purchase products or materials to fulfill a large order
• You are anticipating a Chapter 11 bankruptcy

If you have had difficulty securing financing for your business for any of the following reasons, Hennessey Capital’s working capital options may be right for you:

• Your company has not been in business long enough to secure adequate financing
• Your company is not yet profitable
• You have maximized your current facility & are receiving new orders
• Your company has experienced several years of losses
• Your company has negative equity
• Your company is a government supplier
• You cannot produce financial reporting
• You are in need of A/R administration and credit review assistance
• You are in the process of restructuring
• Your credit scores do not meet bank minimums
• You experience seasonal or one-time orders
• You need to purchase products or materials to fulfill a large order
• You are anticipating a Chapter 11 bankruptcy

What is Mezzanine Financing?

Mezzanine financing is a hybrid of debt and equity financing. This product is a loan that is used to finance the expansion of an existing company and is a form of debt capital.

Why Mezzanine Financing?

Mezzanine financing is beneficial because it is treated like equity on a balance sheet and can be used as additional leverage for secured debt. There is usually very little or no collateral to support the advance although security interests may take a junior position to that of the current secured lender.
Rates are charged as an interest component that is paid monthly or quarterly to the funding source. Mezzanine debt can also carry incentive “kickers” to increase the yield to the funding source if certain financial goals are met. These types of loans can be converted to equity if the terms are not met within the necessary timeframes.

What is Purchase Order Financing?

Purchase Order Financing is a short-term form of financing used to acquire finished goods that have been presold by the client to its credit worthy customers. Funding involves the issuance of letters of credit or payment of funds that allow clients to obtain inventory to fulfill customer orders.

Why Purchase Order Financing?

Purchase order financing is commonly used when a client with limited credit capacity is selling to an end user with strong credit. It allows clients to make large sales that would otherwise exceed their credit capacity. Benefits of purchase order financing include:

The Facts on Purchase Order Financing

• Increased credit capacity based on the strength of the end user
• Allows smaller clients to compete on larger orders
• Provides working capital availability
• Insulates buyers from sellers
• Eliminates additional credit risk
• Uses funding source’s expertise in handling financing arrangements