Near EQuity Loan Product
- Up to $35,000
- Application Fee - $400, Commitment Fee - 1% of Loan Amount
- Interest Rate 6-8%; Participation Fee of up to 1% of annual gross sales
- Term of five to seven years
Description: Debt with participation designed for high growth businesses.
Uses: Addresses the financing needs of high growth businesses: working capital; real estate purchases, equipment purchases, business expansion
Loan Range: $25,000 (pilot and test period). Loan size to be increased with experience and success to $35,000 and above
Term: Five to seven years
Interest Rate: 6-8% interest rate with a Participation Fee of up to 1% of gross annual sales
Repayment: Negotiated on a case-by-case basis. Financial covenants will be developed to address contingencies.
Fees: $400 loan application fee, 1% loan commitment fee
The product is a debt instrument with the downside protection of debt (collateral is taken as security) and the upside protection of high growth offered by equity-like products.
The product will be offered to businesses with a solid management team and anticipated high growth. These may include start-ups with a high demand market niche and experienced management, acquisitions with high growth potential. The funds may be used for purchases of real estate, equipment, inventory, working capital or business acquisitions.