Home Cash Flow Loans

Cash Flow Loans

Nexus Capital provides a custom financing solution involving

Cash Flow Loans

1

Cash Flow Loans

A Cash Flow loan is a type of debt financing, generally used for working capital, utilized by companies with little in the way of hard assets. Still, they have a consistent stream of profits historically. Instead, the Lender would rely on the expected cash flows that a borrowing company generates as collateral for the loan.

 

To secure repayment, the Lender covenants a borrower on metrics such as enterprise value, EBITDA, total interest coverage ratio, total debt/EBITDA, etc. They will also take charge of the business assets to provide the Lender with the ability to control the cash flows in the event of default.

Cash flow loans are usually senior term loans or can be structured as subordinated debt, used for funding growth or financing an acquisition.

What Our Clients Say

Please provide us with some basic info about your needs and we can contact you about a tailored capital solution.