Subordinated debt / excess liquidity loan
What type of product is it?
Subordinated debt is an asset-backed loan halfway between a working capital loan and share capital, where the lender's only expectation of repayment is the company's ability to generate enough profits to repay the loan, and only after higher-priority debts have been settled. This financing product is aimed at companies with growth or buyout projects, for which few guarantees are available.
What are the special features of this financial product?
- The lender bases its analysis and risk primarily on historical repayment capacity combined with potential future funds generated.
- Repayment is flexible and adapts to the company's ability to pay
- If the borrower is unable to repay, the financing can be converted into shares after a certain period of default.
- All debts must be settled by selling the company's assets.
What are the advantages of this financial product?
- Repayment conditions are linked to the company's performance. For example, when producing year-end financial statements, if there are still funds available after other debts have been settled, some or all of the additional funds (above a certain threshold) may be demanded as repayment of the debt.
- The borrower has no obligation to repay subordinated debt financing if the company fails to cover its debts.
In addition to answering your questions, our SADC experts can help you make a real analysis of your situation. What's more, an analysis of your long-term needs and the determination of an appropriate financial strategy for your business could be developed at the same time.
See the list of different needs on the right. This financial product specifically meets the following needs:
Don't hesitate to apply to SADC for financing. We'll help you think through your project and bring it to fruition.
YOU WISH...
- Acquiring, merging or taking over a company
- Improve your working capital / Growth
- Starting a business
- Developing a residential / commercial project
- Acquiring equipment
- Export your products or services
- Financing your tax credits
- Buying commercial/industrial property
- Turn around the financial situation
- Take equity out of your business
- Robotize / Automate / Improve IT
- Financing a startup
- Improve your company's environmental performance
- Carrying out a group project
- Strategic planning for your company's development
