in Definitions.
This association was created to assist the development of the secondary loan market in Europe. It intends to develop best practice and standard documentation. LMA Documentation is used as a starting point in many loan discussions.
in Definitions.
A measure of the value of a loan to the collateral against which it is secured. A €30million loan secured by a €50 million property would be described as a 60% LTV loan.
in Definitions.
Debt that ranks below senior bonds or loans but above common equity. Junior Debt instruments are often called mezzanine loans but can also be structure as preferred equity.
in Definitions.
A similar source of funding to factoring, invoice discounting maintains the relationship between buyer and seller, with the collection of the cash remaining the responsibility of the company.
in Definitions.
A term for financial or corporate entities that pool money, to be used for the purchase of securities (including loan origination), real property and other investment assets. The most well-known entities are banks, insurance companies, pension and hedge funds, real estate trusts, investment advisors and mutual funds.
in Definitions.
A type of hybrid-capital used to provide non-dilutive finance to rapidly growing firms. Typical growth capital investments will include a debt instrument, as well as an equity component in the form of a minority stake, preferred equity or warrant.
in Definitions.
A loan-like transaction, where a company sell its trade receivables to a third party. The sale of the receivables usually occurs at a discount, with the difference between sale price and notional value providing an effective interest to the purchaser.
in Definitions.
The provision of debt capital to small and medium sized businesses (SMEs and MSBs) by private debt funds. Loan sizes tend to be significantly larger than those available in peer-to-peer lending, typically ranging between £2 and £100 million. See also alternative finance and private debt fund
Written by in General.
Most business owners would be able to tell you that a bank takes deposits and gives out loans. However, if you were to ask the same about private debt lenders, they would struggle to respond. Here we explain the structure of a direct lender:
Much like a mutual fund, private debt funds are a specialised ...
Written by in Fundraising.
“Non-dilutive financing is the type of capital acquisition that does not require you to give up shares of your business”,
Scott Shane, Case Western Reserve University
Dilutive financing may be common place and expected in the world of technology start-ups. But for a regional family run business, the idea of having to give up some ...