Asset-based funding is where the funding outlaid to a third-party is secured by an asset. For example, Capital Corp Merchant Banking would disburse funding to a group and secures an asset with a mortgage till the funding is paid in full. Should the...
Capital Corp Merchant Banking previously issued a post highlighting a “hard money” loan. The primary difference between that type of financing and the topic of this post, that of a a swing loan, is the timing aspect.
One scenario that Capital Corp Merchant Banking is approached with to provide financing for is “Build, Lease, Transfer” arrangements - “BLT” for short.
In this type of arrangement, a developer designs and builds the complete facility. Sometimes the...
The first benefit of a cross border acquisition is that the time frame is much shorter. A Greenfield investment is developed from the ground up, whereas an acquisition would be of an already existing development hence set market presence. This opti...
The "Due Diligence" is a process whereby any given funding source will seek sufficient information about a business entity (applying for funding) to reach an informed judgment as to its value for a specific purpose.
As regulation and oversight increase year after year, the benefits of a Due Diligence also grow. In equity funding or commercial/ industrial funding the due diligence is the equivalent of a bank running a Credit Bureau verification .
