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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.

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.

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.

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.

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.

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

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 ...

“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 ...

In December 2017, Altimapa successfully secured a 5-year term, 50 million Euro financing for a AASA, a leading consumer lender operating in Finland, Sweden and Poland

With the Bank of England (BoE) looking ever more likely to increase rates in the near future, now is the time to start thinking whether your business would benefit most from a fixed or floating interest rate business loan.